Remember, practice makes perfect, so don’t be discouraged if it CARES Act takes some time to master this concept. Let’s break it down step by step with formulas and real-world examples to make it easy to grasp. The word usage examples above have been gathered from various sources to reflect current and historical usage.

Is Gross Profit Margin the Same as Gross Profit?

(178) The profit statement indicated a decline in gross profit margin due to increased material costs. (155) The profit statement indicated a decline in gross profit due to increased production costs. (64) The company’s gross profit margin decreased due to increased production costs. Gross profit is the revenue minus the direct cost of producing the product or service.

Gross Profit Formula Explained

(70) Gross profit is calculated by subtracting the cost of goods sold from revenue. (57) A higher gross profit margin allows for greater reinvestment in the business. (50) The company’s gross profit was impacted by a decrease in consumer spending. (49) LIFO can result in higher gross profit margins during inflationary periods.

Gross Profit Margin example sentence

(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. (27) A higher gross profit margin allows for greater reinvestment in the business. (237) The CEO announced that the gross profit had exceeded expectations, but the shareholders were still concerned about the company’s long-term sustainability. (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. (207) The CFO recommended a cost-cutting strategy to improve gross profit, and the board of directors approved the plan.

What is the Difference Between Gross Profit and Net Income?

• (167) The profit statement displayed a decline in gross profit margin due to rising material costs.
• (206) A high gross profit margin can provide a company with the financial flexibility to invest in growth opportunities.
• (171) Despite a decrease in gross profit, the company’s customer satisfaction ratings remained high.
• (223) Although the company’s gross profit had declined slightly, they were able to offset the losses by increasing their sales volume.
• (35) The profit-and-loss statement revealed a decline in gross profit margin.
• But its quarterly gross profit came at the expense of missing its forecast for monthly active users.

(186) Despite a decrease in gross profit, the company’s net income increased due to cost-cutting measures. (128) A company with a consistently high gross profit margin is likely to attract investors. (81) The company’s gross profit margin is lower than expected due to increased costs.

• (78) The company’s gross profit margin was negatively impacted by a decrease in customer demand.
• (192) The gross profit margin is a measure of a company’s profitability before deducting operating expenses.
• (99) The ending inventory is a key component in calculating the company’s gross profit.
• (56) The gross profit analysis revealed areas where cost reductions could be made.
• (79) The company’s gross profit margin is expected to be impacted by changes in market conditions.
• (103) The gross profit margin is a measure of how efficiently a company generates profit.
• (118) Gross profit increased significantly this quarter, but operating expenses also rose.

(103) The gross profit margin is a measure of how efficiently a company generates profit. (90) The company’s Accounting for Churches gross profit was negatively affected by a decline in market demand. (76) The income summary account is used to calculate the gross profit of a business. (75) The company’s gross profit margin is a reflection of its competitive advantage.

Gross Profit Margin sentence

(225) The CFO suggested diversifying the company’s product line to increase gross profit, but the CEO was hesitant to take on more risk. (224) The company’s gross profit was impacted by supply chain disruptions, but management implemented new measures to mitigate the risk. (214) The company’s gross profit was impacted by the supply chain disruptions, which led to delays in production and delivery.

How to Calculate Gross Profit: Formula and Examples

• (70) Gross profit is calculated by subtracting the cost of goods sold from revenue.
• (69) A low gross profit margin may indicate that a company is struggling to generate revenue.
• (130) The company’s gross profit margin is a reflection of its efficiency in managing costs.
• (94) The company’s gross profit margin exceeded industry standards, signaling strong financial performance.
• (179) The gross profit margin is a useful tool for comparing the profitability of different companies.
• (129) The company’s gross profit margin remained stable despite a decrease in overall sales.
• 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.

(89) The company’s gross profit was negatively impacted by a decrease in sales volume. (85) The gross profit margin is typically expressed as a percentage of total revenue. (82) The gross profit margin is a key metric used to evaluate business profitability.

• (178) The profit statement indicated a decline in gross profit margin due to increased material costs.
• (75) The company’s gross profit margin is a reflection of its competitive advantage.
• (80) The management team is working on strategies to improve the gross profit margin.
• (163) The gross profit analysis highlighted areas where operational efficiencies could be improved.
• Some businesses have higher production costs, while others operate with wider margins.

Compare Meanings

(94) The company’s gross profit was higher than expected due to cost-cutting measures. (86) The gross profit margin is a measure of a company’s ability to generate revenue. (78) The ratio analysis showed that the company’s gross profit margin had decreased. (62) The gross profit margin for the company was higher than the industry average.