GROSS MARGIN Definition

Bookmark and Share

GROSS MARGIN is the ratio of gross profit to sales revenue. (sometimes used as a synonym for gross profit). For a manufacturer, gross margin is a measure of a companys efficiency in turning raw materials into income; for a retailer it measures their markup over wholesale. GROSS MARGIN is gross income divided by net sales, expressed as a percentage.

Learn new Accounting Terms

INVENTORY TURNOVER is a ratio that shows how many times the inventory of a firm is sold and replaced over a specific period.

EX-WORKS see EX-FACTORY.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.