Gross margin

Gross margin,

Definition of Gross margin:

  1. Gross income expressed as a percentage of net sales. Formula: (Sales revenue - Cost of sales) x 100 ÷ Sales revenue.

How to use Gross margin in a sentence?

  1. When a business talks about its bottom line what they are referring to is the gross margin and whether it was high enough or not.
  2. Based on the companys annual sales, Bob thought the gross margin seemed somewhat inflated, but he relaxed after working out the percentages with the accounting department.
  3. The companys president was very pleased that his business had finally achieved a gross margin greater than 50%, which was higher than it had been the past three years.

Meaning of Gross margin & Gross margin Definition