(95) The gross profit margin is an important factor considered by lenders when evaluating loan applications. (239) The board of directors was pleased with the company’s gross profit growth, but they were still hesitant to invest in new projects until the economy stabilized. (235) The CFO explained that the gross profit had been impacted by unexpected expenses, but the company was still on track to meet their annual targets. (219) The CEO announced a new cost-cutting initiative to increase gross profit, which was met with mixed reactions from employees. (209) The CFO presented a detailed report on the company’s gross profit, which included projections for the next quarter.
- It measures how much money is earned from sales after subtracting COGS, showing the profit earned on each dollar of sales.
- (168) The gross profit margin can be used to identify areas where a company can improve efficiency.
- This scenario can occur if the company has high operating expenses, such as administrative salaries, research and development costs, or significant interest expenses.
- (195) The gross profit margin is an important factor considered by lenders when evaluating loan applications.
- Gross profit can also be misleading when analyzing the profitability of service sector companies.
Key Takeaways
(60) A high gross profit margin indicates that a company is effectively managing its costs. (44) The ratio analysis revealed Outsource Invoicing that the company’s gross profit margin had declined. (42) The gross profit margin is a key metric used to evaluate business profitability.
Gross Sentence Examples
(82) The marketing team’s efforts resulted in a significant increase in gross revenue, and they were recognized for their achievements. (77) The CEO expressed concern over the decline in gross earnings and implemented cost-cutting measures. (72) The retained earnings company’s financial report showed a decrease in gross wages compared to the previous year.
Key elements of the gross profit formula
(121) The accounting record showed that the company had a low level of gross profit margin. (106) The gross profit of the restaurant was higher than expected due to increased sales. (105) Net purchases are a key component in calculating the company’s gross profit margin. (94) The company’s gross profit was higher than expected due to cost-cutting measures. (89) The company’s gross profit was negatively impacted by a decrease in sales volume.
- (38) The financial report showed a decline in gross income compared to last year.
- Comparing gross profits year to year or quarter to quarter can be misleading because gross profits can rise while gross margins fall.
- (94) The company’s gross profit was higher than expected due to cost-cutting measures.
- (41) The company’s gross profit margin is lower than expected due to increased costs.
- (41) The income account is used to calculate the company’s gross profit margin.
- Gross profit is the amount of money a company earns from its core operations after subtracting the cost of goods sold (COGS).
(59) The gross profit margin can be influenced by changes in pricing or cost of goods sold. (52) Net purchases are a key component in calculating the company’s gross profit margin. (39) The ratio analysis showed that the company’s gross profit margin had decreased. (234) Despite the fact that the company’s gross profit margin was higher than the industry average, they were still struggling to attract new customers. (232) The marketing team proposed a new advertising campaign to boost gross profit, but the finance department was concerned about the potential costs.
Gross Profit Margin in a sentence
(224) The company’s gross profit was impacted by supply chain disruptions, but management implemented new measures to mitigate the risk. (218) Despite a challenging economic environment, the company’s gross profit margin remained stable, and investors were reassured. (213) Gross profit for the quarter exceeded expectations, and the company’s management team credited strong sales performance. (200) The sales team was under pressure to increase revenue and gross profit, which led to some aggressive tactics. (190) Although the company’s gross profit increased, the CEO was still concerned about the rising expenses.
How can a company improve its gross profit margin?
(131) The company’s gross profit margin is impacted by changes in the cost of raw materials. (130) The company’s gross gross profit in a sentence profit margin is a reflection of its efficiency in managing costs. (125) A high gross profit margin indicates that a company is effectively managing its costs. (108) The company’s gross profit margin was negatively impacted by a decrease in pricing. (84) The ratio analysis revealed that the company’s gross profit margin had declined.
Gross Profit: What It Is and How to Calculate It
- (20) The gross profit margin is calculated by dividing gross profit by revenue.
- (53) The company’s gross profit margin is impacted by fluctuations in raw material costs.
- (145) The gross profit margin can be improved by reducing production costs or increasing sales.
- (124) The gross profit margin can be influenced by changes in pricing or cost of goods sold.
- (108) The company’s gross profit margin was negatively impacted by a decrease in pricing.
(23) The gross profit margin is a key indicator of a company’s financial health. (19) The income account is used to calculate the company’s gross profit margin. (236) The company’s gross profit margin was negatively impacted by a decrease in pricing, but the CEO announced plans to implement a new pricing strategy.