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Definitions from the Web

Gross Margin

Definition:

Gross margin refers to the profitability measure that calculates the difference between a company's revenue and the cost of goods sold (COGS), expressed as a percentage. It indicates the amount of profit a company makes from the sale of its products or services before deducting other expenses.

Usage:

Sense 1 - Popular meaning:

In finance and business, gross margin is an essential metric to evaluate a company's financial performance. It helps determine its ability to generate profit from its core operations.

Example sentence: The company's gross margin has increased significantly over the past year, indicating improved efficiency in cost management.

Sense 2 - Local meaning:

In the context of local markets, gross margin can refer to the price markup on products sold in a specific region or store, which covers additional expenses such as transportation, storage, and local taxes.

Example sentence: The local grocery store offers competitive prices with a lower gross margin compared to larger supermarket chains in the city.

Possible Related Products:

• Gross Margin Analysis Books
• Gross Margin Calculators
• Gross Margin Management Guides