(165) The earnings statement illustrated a decrease in gross profit due to rising production costs. This is different from gross profit which calculates how much a business profits after the cost of goods is deducted gross profit in a sentence from the normal balance revenue. Gross revenue is also called gross sales or gross income, all of which are one and the same. The production issues announced this week could get in the way of Rivian’s goal of achieving positive gross profits by the fourth quarter of this year.
How to use gross profit in a sentence?
By understanding the nuances of this word and exploring its diverse applications, one can enhance their vocabulary and effectively communicate in various settings. Understanding the concept of gross profit is essential for anyone involved in business or finance. Gross profit is a fundamental metric that reflects the profitability of a company after deducting the cost of goods sold from its total revenue. It is a key indicator of a company’s financial health and efficiency in producing goods or services.
Gross Profit Margin in a sentence
(34) The company reported a significant increase in gross earnings this quarter. A company should investigate all revenue streams and each component of COGS to identify the cause if its gross profit is 25% less than its competitor’s. (81) The gross margin is a useful tool for comparing the profitability of different products or services. (79) The gross margin is a key performance indicator that management focuses on to drive profitability.
Gross Profit Margin sentence examples
(37) The smell of the fish market was in gross and lingered in the air for hours. (30) The actor’s performance Bookkeeping vs. Accounting was met with a collective gasp in gross disbelief. (212) Gross profit for the year was higher than projected, but the company still faced challenges with inventory management.
- (73) The cost of goods sold is subtracted from a company’s revenue to calculate its gross margin.
- The word usage examples above have been gathered from various sources to reflect current and historical usage.
- By examining gross profit margins, one can gauge the competitiveness of a business, its pricing power, and operational efficiency.
- (81) Despite a decrease in gross revenue, the company’s net income increased due to a reduction in expenses.
- (90) The company’s gross profit margin is expected to improve next quarter due to cost-saving initiatives.
(213) Gross profit for the quarter exceeded expectations, and the company’s management team credited strong sales performance. (205) The CFO reported that gross profit had increased by 10%, and the company’s board of directors applauded the news. (190) Although the company’s gross profit increased, the CEO was still concerned about the rising expenses. (179) The gross profit margin is a useful tool for comparing the profitability of different companies. (139) A low gross profit margin may indicate that a company is struggling to generate revenue.
Sentence using gross profit margin
(130) The company’s gross 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. bookkeeping (120) The company’s gross profit margin is affected by changes in sales volume and pricing. (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. (80) The management team is working on strategies to improve the gross profit margin.
(83) A company with a low gross profit margin may struggle to attract and retain talented employees. (73) The company’s gross profit margin has been consistently above 20% for the past five years. (64) The company’s gross profit margin has been steadily increasing over the past few years. (50) The gross profit margin is a measure of how efficiently a company generates profit. (38) The company’s gross profit margin is a reflection of its competitive advantage.
(55) The company’s gross margin was negatively affected by a decrease in sales volume. (45) The company’s financial report showed a significant increase in gross margin. (97) The gross profit margin is a key indicator of a company’s ability to generate profit from its core operations. (78) The company’s gross profit margin was negatively impacted by a decrease in customer demand. (71) The cost of goods sold is a key component in determining a company’s gross profit margin.
- Gross profit is the amount of money a business makes after deducting the cost of goods sold from the total revenue.
- (75) The cost of goods sold is an expense that is deducted from revenue to calculate gross margin.
- Gross profit margin, calculated as gross profit divided by total revenue, plays a critical role in financial analysis.
- (218) Despite a challenging economic environment, the company’s gross profit margin remained stable, and investors were reassured.
- (80) The management team is working on strategies to improve the gross profit margin.
Gross profit is dictated by net revenue and cost of goods sold, so a company can strategically adjust more elements of gross profit than it can for net profit. Both are indicators of a company’s financial health, but they serve different purposes. (66) The company’s gross margin remained steady despite a decrease in overall market demand. (61) The gross margin is an important metric for evaluating the success of a product line. (58) The company’s gross margin was impacted by fluctuations in currency exchange rates.