gross margins

Revenue minus costs

Gross margins measure the percentage of revenue remaining after subtracting the direct costs of producing goods or services.

A company with high gross margins keeps more of each dollar earned before accounting for overhead, marketing, and other operating expenses.

Their gross margins improved after switching suppliers.

The term appears frequently in financial analysis and earnings reports.

Related

revenue · price point · profitability · variable costs · fixed costs · razor thin · profits · break even · operating expenses · costs · pricing strategies · net · pricing · production costs · cost structure · direct costs · finance · calculations

Categories
Opposites
profit calculation level

gross marginsnet profit

Income after subtracting costs

net income · bottom line · operating profit · after-tax profit · EBITDA

financial health direction

gross marginsoperating losses

Expenses exceeding operational revenue

net losses · loss-making · cost overruns · unprofitability · red ink

Family

gross, margin, grossly, grossness, grosser, grossest, margins, marginal, marginally

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G