Gross Margin definition: Copy, customize, and use instantly
Introduction
The term "Gross Margin" refers to the difference between a company's revenue from sales and the cost of goods sold (COGS), expressed as a percentage of revenue. It represents the portion of sales revenue that exceeds the cost of producing or purchasing the goods sold, providing insight into a company's financial health and operational efficiency.
Below are various examples of how "Gross Margin" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Gross Margin" as the difference between sales revenue and cost of goods sold
This definition ties "Gross Margin" to the difference between revenue and COGS.
"Gross Margin" means the difference between the total sales revenue and the cost of goods sold (COGS), representing the profit made before deducting operating expenses, taxes, and interest.
Definition of "Gross Margin" as a profitability ratio indicating the efficiency of production
This definition connects "Gross Margin" to profitability and production efficiency.
"Gross Margin" refers to a profitability ratio that indicates how efficiently a company uses its resources to produce and sell goods, calculated as the difference between revenue and COGS divided by revenue.
Definition of "Gross Margin" as the percentage of revenue remaining after production costs
This definition links "Gross Margin" to the percentage remaining after production costs.
"Gross Margin" means the percentage of revenue remaining after subtracting the direct costs of production, such as the cost of raw materials and labor, from the sales revenue.
Definition of "Gross Margin" as a measure of financial health based on sales and production costs
This definition ties "Gross Margin" to financial health.
"Gross Margin" refers to a financial metric that measures the health of a business based on the relationship between sales revenue and the direct costs of production or sales.
Definition of "Gross Margin" as the amount of money left after accounting for production expenses
This definition connects "Gross Margin" to the amount of money after production expenses.
"Gross Margin" means the amount of money left after accounting for the cost of goods sold (COGS), representing the funds available for covering other operating expenses and generating profits.
Definition of "Gross Margin" as a financial ratio that shows how much profit is made on each dollar of sales
This definition links "Gross Margin" to a financial ratio.
"Gross Margin" refers to a financial ratio that shows how much profit is made for each dollar of sales, calculated by dividing the gross profit (revenue minus COGS) by total revenue.
Definition of "Gross Margin" as a key indicator of pricing strategy and production efficiency
This definition ties "Gross Margin" to pricing and production.
"Gross Margin" means a key indicator that helps assess a company's pricing strategy and production efficiency, revealing the profitability of core business activities before operating expenses.
Definition of "Gross Margin" as the profit a company earns from its core business activities
This definition connects "Gross Margin" to core business activities.
"Gross Margin" refers to the profit a company earns from its core business activities, calculated by subtracting the direct costs of goods sold from sales revenue, excluding other operating expenses.
Definition of "Gross Margin" as the difference between total sales and variable production costs
This definition links "Gross Margin" to variable production costs.
"Gross Margin" means the difference between total sales and variable production costs, indicating how much money is available to cover fixed costs and generate profits.
Definition of "Gross Margin" as a financial metric for assessing cost efficiency
This definition ties "Gross Margin" to cost efficiency.
"Gross Margin" refers to a financial metric used to assess a company's cost efficiency in producing goods or services, indicating the portion of revenue that exceeds the direct costs of production.
Definition of "Gross Margin" as the ratio of gross profit to total revenue
This definition connects "Gross Margin" to the ratio of profit to revenue.
"Gross Margin" means the ratio of gross profit (sales revenue minus COGS) to total revenue, expressed as a percentage to show how much profit a company makes after covering its direct production costs.
Definition of "Gross Margin" as the profit from sales minus direct costs of production
This definition links "Gross Margin" to direct costs of production.
"Gross Margin" refers to the profit a company makes from its sales, after subtracting the direct costs of production, such as labor and raw materials, but before accounting for other operating expenses.
Definition of "Gross Margin" as the financial difference that remains after covering production costs
This definition ties "Gross Margin" to covering production costs.
"Gross Margin" means the financial difference that remains after covering the production costs (COGS), which can then be used to cover other operating expenses and generate profits.
Definition of "Gross Margin" as the amount available to cover operating expenses after COGS
This definition connects "Gross Margin" to operating expenses.
"Gross Margin" refers to the amount of revenue left after covering the cost of goods sold (COGS), which is available to cover operating expenses, taxes, and contribute to the company’s profit.
Definition of "Gross Margin" as an indicator of a company's pricing power and cost control
This definition links "Gross Margin" to pricing power and cost control.
"Gross Margin" means an indicator of a company's pricing power and cost control, reflecting its ability to generate revenue while maintaining reasonable production costs.
Definition of "Gross Margin" as the difference between net sales and the cost of producing goods
This definition ties "Gross Margin" to the difference between net sales and production costs.
"Gross Margin" refers to the difference between net sales and the direct costs of producing goods or services, showing how efficiently a company produces and sells its offerings.
Definition of "Gross Margin" as a key financial measure for assessing operational profitability
This definition connects "Gross Margin" to operational profitability.
"Gross Margin" means a key financial measure for assessing a company’s operational profitability, focusing on the relationship between sales revenue and production costs.
Definition of "Gross Margin" as a profitability metric that reflects sales efficiency
This definition links "Gross Margin" to sales efficiency.
"Gross Margin" refers to a profitability metric that reflects a company’s sales efficiency by calculating how much profit is made from the sales after deducting direct production costs.
Definition of "Gross Margin" as the difference between revenue and direct production costs
This definition ties "Gross Margin" to the difference between revenue and production costs.
"Gross Margin" refers to the difference between a company’s total revenue and the direct production costs associated with manufacturing its goods or services.
Definition of "Gross Margin" as a financial metric for assessing operational efficiency
This definition connects "Gross Margin" to operational efficiency.
"Gross Margin" means a financial metric used to assess operational efficiency, representing the portion of revenue that remains after deducting the costs directly tied to production.
Definition of "Gross Margin" as a percentage showing the profit made from sales
This definition links "Gross Margin" to profit from sales.
"Gross Margin" refers to the percentage of profit made from sales after subtracting the cost of producing the goods or services sold, reflecting profitability before operating expenses.
Definition of "Gross Margin" as the measure of profitability from core business activities
This definition ties "Gross Margin" to core business activities.
"Gross Margin" means the measure of profitability from a company’s core business activities, calculated by subtracting the cost of goods sold from total revenue.
Definition of "Gross Margin" as the portion of sales revenue after accounting for production costs
This definition connects "Gross Margin" to sales revenue and production costs.
"Gross Margin" refers to the portion of sales revenue that remains after accounting for the direct costs associated with the production of goods or services sold.
Definition of "Gross Margin" as a key indicator of product pricing and cost structure
This definition links "Gross Margin" to pricing and cost structure.
"Gross Margin" means a key indicator of product pricing and cost structure, providing insight into the profitability of individual products or services before operating expenses are considered.
Definition of "Gross Margin" as the revenue remaining after deducting production expenses
This definition ties "Gross Margin" to remaining revenue after production expenses.
"Gross Margin" refers to the revenue remaining after deducting the costs directly associated with producing goods or services, which is used to cover other operational costs and generate profits.
Definition of "Gross Margin" as the amount of profit generated by sales, excluding overhead
This definition connects "Gross Margin" to sales profit excluding overhead.
"Gross Margin" refers to the amount of profit generated by sales after excluding overhead, operating expenses, and taxes, providing a clear picture of direct profitability from sales activities.
Definition of "Gross Margin" as the difference between income and direct costs of sales
This definition links "Gross Margin" to the difference between income and direct sales costs.
"Gross Margin" means the difference between a company’s income from sales and the direct costs incurred to produce the goods or services, such as materials and labor.
Definition of "Gross Margin" as a financial indicator of profitability from sales activities
This definition ties "Gross Margin" to profitability from sales activities.
"Gross Margin" refers to a financial indicator of profitability, measuring the portion of each sales dollar that remains after covering the direct costs of production.
Definition of "Gross Margin" as the financial return on the cost of goods sold
This definition connects "Gross Margin" to financial return on COGS.
"Gross Margin" refers to the financial return on the cost of goods sold (COGS), indicating how much profit is made from each unit sold after covering production expenses.
Definition of "Gross Margin" as a key indicator of business efficiency in production
This definition links "Gross Margin" to business efficiency.
"Gross Margin" means a key indicator of business efficiency in production, showing how effectively a company generates profit from its production activities.
Definition of "Gross Margin" as the percentage of revenue left after covering production expenses
This definition ties "Gross Margin" to the percentage left after production expenses.
"Gross Margin" refers to the percentage of revenue left after covering production expenses, reflecting the efficiency of a company’s manufacturing or service provision process.
Definition of "Gross Margin" as a profitability metric focused on production costs
This definition connects "Gross Margin" to production costs.
"Gross Margin" means a profitability metric that focuses on production costs, measuring the profit generated from sales after deducting direct production-related expenses.
Definition of "Gross Margin" as the profit margin derived from sales before other expenses
This definition links "Gross Margin" to profit margin before other expenses.
"Gross Margin" refers to the profit margin derived from sales before other expenses like administration, marketing, and taxes are deducted.
Definition of "Gross Margin" as the ratio of gross profit to total revenue
This definition ties "Gross Margin" to the gross profit ratio.
"Gross Margin" means the ratio of gross profit (revenue minus cost of goods sold) to total revenue, typically expressed as a percentage to show how much profit is made after production costs.
Definition of "Gross Margin" as a tool for evaluating pricing strategies and cost control
This definition connects "Gross Margin" to pricing and cost control.
"Gross Margin" refers to a tool for evaluating a company's pricing strategies and cost control, helping assess how effectively the business is generating profit from its products or services.
Definition of "Gross Margin" as the amount of revenue remaining after subtracting production costs
This definition links "Gross Margin" to remaining revenue after production costs.
"Gross Margin" means the amount of revenue remaining after subtracting the costs associated with producing the goods or services sold, which contributes to the company's overall profitability.
Definition of "Gross Margin" as an indicator of a company’s pricing power and cost management
This definition ties "Gross Margin" to pricing power and cost management.
"Gross Margin" refers to an indicator of a company’s ability to set prices and manage production costs, providing insights into how well the company maintains profitability from its core operations.
Definition of "Gross Margin" as the ratio between gross profit and net sales
This definition ties "Gross Margin" to the ratio between gross profit and net sales.
"Gross Margin" refers to the ratio between a company's gross profit (revenue minus cost of goods sold) and net sales, indicating the percentage of revenue that exceeds production costs.
Definition of "Gross Margin" as the profit remaining after direct production expenses
This definition connects "Gross Margin" to profit after production expenses.
"Gross Margin" means the profit remaining after direct production expenses such as raw materials and labor, reflecting how much a company makes from its core operations before accounting for operating costs.
Definition of "Gross Margin" as a metric that highlights profitability before operating expenses
This definition links "Gross Margin" to profitability before operating expenses.
"Gross Margin" refers to a metric that highlights a company’s profitability before operating expenses, taxes, and other indirect costs, showing the efficiency of its production process.
Definition of "Gross Margin" as the portion of each sales dollar left after production costs
This definition ties "Gross Margin" to the portion of each dollar left after production costs.
"Gross Margin" refers to the portion of each sales dollar left after covering production costs, which is available to pay for operating expenses and contribute to profits.
Definition of "Gross Margin" as an indicator of the financial health of a company’s core operations
This definition connects "Gross Margin" to a company’s core operations.
"Gross Margin" means an indicator of the financial health of a company’s core operations, measuring how much profit is generated from direct sales after subtracting production costs.
Definition of "Gross Margin" as the percentage of revenue that remains after subtracting COGS
This definition links "Gross Margin" to revenue and COGS.
"Gross Margin" refers to the percentage of revenue that remains after subtracting the cost of goods sold (COGS), reflecting the profitability of a company’s core activities.
Definition of "Gross Margin" as a measurement of pricing strategy effectiveness
This definition ties "Gross Margin" to pricing strategy effectiveness.
"Gross Margin" means a measurement of how effective a company’s pricing strategy is, showing how much profit it makes after covering the cost of production.
Definition of "Gross Margin" as the difference between income from sales and the cost of production
This definition connects "Gross Margin" to income and production cost.
"Gross Margin" refers to the difference between income from sales and the direct costs incurred in producing goods or services, providing insight into operational efficiency.
Definition of "Gross Margin" as the proportion of revenue available for covering operational expenses
This definition links "Gross Margin" to covering operational expenses.
"Gross Margin" means the proportion of revenue available for covering operational expenses and generating profit after accounting for direct production costs.
Definition of "Gross Margin" as the amount of money made on each sale before fixed expenses
This definition ties "Gross Margin" to money made before fixed expenses.
"Gross Margin" refers to the amount of money made on each sale before deducting fixed expenses such as rent, utilities, and salaries, indicating how much profit remains after production costs.
Definition of "Gross Margin" as the financial buffer available after production costs
This definition connects "Gross Margin" to the financial buffer available.
"Gross Margin" means the financial buffer available after production costs are covered, which can then be used to cover operating expenses, taxes, and generate net profit.
Definition of "Gross Margin" as a ratio that measures the efficiency of production and pricing
This definition links "Gross Margin" to production and pricing efficiency.
"Gross Margin" refers to a ratio that measures the efficiency of a company’s production processes and pricing strategies, showing how well the company converts sales into profit before operating costs.
Definition of "Gross Margin" as an indicator of how much profit a company makes from its core products
This definition ties "Gross Margin" to profit from core products.
"Gross Margin" means an indicator of how much profit a company makes from its core products after deducting production costs, providing insight into product-level profitability.
Definition of "Gross Margin" as the total revenue from sales minus direct costs of production
This definition connects "Gross Margin" to total revenue and direct production costs.
"Gross Margin" refers to the total revenue generated from sales minus the direct costs of production, such as materials and labor, revealing how much a company earns from its core business activities.
Definition of "Gross Margin" as a tool for evaluating business performance in manufacturing
This definition links "Gross Margin" to evaluating business performance.
"Gross Margin" means a tool used to evaluate business performance in manufacturing by comparing sales revenue to the direct costs of producing goods.
Definition of "Gross Margin" as a metric that evaluates the cost-effectiveness of a company’s production process
This definition ties "Gross Margin" to cost-effectiveness.
"Gross Margin" refers to a metric that evaluates the cost-effectiveness of a company’s production process by measuring how much revenue exceeds the cost of producing goods.
Definition of "Gross Margin" as a key metric for pricing, cost control, and profitability
This definition connects "Gross Margin" to pricing, cost control, and profitability.
"Gross Margin" means a key metric for evaluating pricing strategies, cost control measures, and overall profitability, indicating how efficiently a company manages production expenses.
Definition of "Gross Margin" as the total sales revenue minus variable costs associated with production
This definition links "Gross Margin" to variable production costs.
"Gross Margin" refers to the total sales revenue minus the variable costs associated with production, such as raw materials and labor, indicating the company’s efficiency in generating profit from sales.
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