Definition of Gross margin:
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?
- 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.
- 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.
- 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