(96) The company’s gross profit was lower than anticipated due to a decrease in sales. (90) The company’s gross profit was negatively affected by a decline in market demand. (70) Gross profit is calculated by subtracting the cost of goods sold from revenue.

Sentence with gross margin

In conclusion, examples of sentences made with the word “gross profit” illustrate how this financial metric is used to assess a company’s profitability. Companies often analyze gross profit to make strategic decisions, set pricing strategies, and evaluate performance over time. A key measure of efficiency, gross profit measures the profit a business makes after subtracting the cost of goods sold (COGS) from the total revenue.

What are the limitations of focusing solely on one type of margin?

(40) The company’s gross profit margin is a reflection of its pricing strategy. Essentially, net income is the “bottom line” that reflects the company’s financial performance after accounting for all expenses. Centralized FP&A tools like Cube automatically pull real-time revenue and COGS data directly from your financial systems to instantly gross profit generate accurate gross profit figures. Total revenue includes all income generated from the sale of goods or services during a specific period. Therefore, if you want to find your gross profit for last year, you only need to pull figures from the year in question.

Industry Standards and Variations

(43) The company’s gross margin was affected by a decrease in customer retention. (41) The company’s gross margin decreased due to a decrease in customer loyalty. Total revenue is income from all sales, while considering customer returns and discounts. He explained it was a “massive hit” when their gross profits were usually around £300,000.

Net income assesses whether the CARES Act operation is profitable when administrative costs, rent, insurance, and taxes are included. (88) The gross profit margin is often used as a benchmark to compare companies within the same industry. (86) The profit-and-loss statement indicated a rise in gross profit margin due to cost-saving measures. (78) The company’s gross profit margin was negatively impacted by a decrease in customer demand. (69) A low gross profit margin may indicate that a company is struggling to generate revenue.

• To calculate gross profits, you need to know what to include, which depends heavily on your industry.
• (188) The company’s gross profit exceeded expectations, so management decided to invest in new technology.
• Rather than relying on manual calculations, you can prepare financial statements instantly.
• Gross margin reflects the excess of revenue over the cost of goods sold (COGS), while net margin accounts for all other expenses, including taxes and operational costs.
• (30) The actor’s performance was met with a collective gasp in gross disbelief.

Example Sentences

Gross profit measures a business’s profit after deducting COGS, whereas operating profit measures a business’s profit after deducting all operating expenses. Gross profit is the amount of money a business makes after deducting the cost of goods sold from the total revenue. The word usage examples above have been gathered from various sources to reflect current and historical usage. (170) The perpetual inventory method allows businesses to accurately calculate gross profit margins. (145) The gross profit margin can be improved by reducing production costs or increasing sales.

• (60) A high gross profit margin indicates that Outsource Invoicing a company is effectively managing its costs.
• (80) The gross margin is a measure of the company’s ability to generate profit from its core operations.
• (207) The CFO recommended a cost-cutting strategy to improve gross profit, and the board of directors approved the plan.
• (69) The cost of goods sold is an essential component in determining a company’s gross margin.
• Now that you have a better grasp Legal E-Billing on how to use Gross Profit effectively, go forth and conquer the financial world!
• If a product or service generates a gross profit, this opens the doorway to the business offering it.