Gross Margin

Business / Taxes / Gross Margin: Gross margin, sometimes called gross profit, is the percentage by which profits exceed production costs. To find gross margin you divide sales minus production costs by sales. For example, if you want to calculate your gross margin on selling handmade scarves, you need to know how much you spent creating the scarves, and what you collected by selling them. If you sold 10 scarves at $15 a piece, and spent $8 per scarf to make them, your gross margin would be 46.7%, or $150 in sales minus $80 in production costs divided by $150. Gross margin is not the same as gross profit, which is simply sales minus costs. In this example, it’s $70, or $150 minus $80. If you’re doing research on a company you’re considering as an investment, you can look at the gross margin to help you see how efficiently it uses its resources. If the company has a higher gross margin than its competition, it can command higher prices or spends less on production. That might mean it can allocate more resources to developing new products or pursuing other projects.

Other Words for Gross

Gross Adjective Synonyms: coarse, vulgar, crude, unsophisticated, uncultured, uncultivated, earthy, crass, indelicate, indecent, inappropriate, unseemly, improper, unrefined, bawdy, ribald, Rabelaisian, raw, rude, offensive, obscene, lewd, dirty, smutty, pornographic, filthy
Gross Noun Synonyms: fat, obese, corpulent, overweight, big, large, bulky, great, heavy, ponderous, massive, cumbersome, unwieldy
Gross Verb Synonyms: total, aggregate, entire, pre-tax, (all-)inclusive, overall, whole
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Other Words for Margin

Margin Noun Synonyms: edge, border, perimeter, periphery, rim, lip, side, brink, verge
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Margin Of Profit

Business / Finance / Margin Of Profit: Gross profit divided by net sales. Used to measure a firm's operating efficiency and pricing policies in order to determine how competitive the firm is within the industry. MORE

Margin Department

Business / Finance / Margin Department: The department in a brokerage firm that monitors customers' margin accounts, ensuring that all short sales, stock purchases, and other positions are covered by the margin account balance. MORE

Margin Call

Business / Agriculture / Margin Call: (1) A request from a brokerage firm to a customer to bring margin deposits up to initial levels: (2) a request by the clearinghouse to a clearing member to make a deposit of original margin, or a dail MORE

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