
(106) The gross profit of the restaurant was higher than expected due to increased sales. (103) The gross profit margin is a measure of how efficiently a company generates profit. (101) The company’s gross profit margin has been steadily increasing over the past year. (94) The company’s gross profit was higher than expected due to cost-cutting measures.

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A higher gross profit suggests that a company is efficient at producing and selling its goods or services. It is a critical indicator of financial health, used to cover operating expenses, invest in new projects, and return value to shareholders. Gross profit, a key financial metric, is the total revenue of a company minus the cost of goods sold (COGS). It represents the amount of money a company has made from its core business activities before accounting for other expenses like salaries, rent, and taxes. Essentially, it measures the efficiency of a company in managing its labor and supplies in the production process.
Sentence of gross profit margin
Efforts to improve the quality of products, enhance value proposition to customers, or streamline supply chain management can also lead to improved gross profit margins. However, it’s important for companies to balance these strategies with market competitiveness and customer satisfaction. Gross profit is pivotal for both businesses and investors because it indicates the core profitability of a company’s operations.

Sentence with gross profit margin

(81) The gross profit margin is calculated by subtracting the cost of goods sold from total revenue. gross vs net (173) The gross profit margin is calculated by subtracting the cost of goods sold from total revenue. That would mean for every $1 of revenue the business gets $0.20 as gross profit.
(49) LIFO can result in higher gross profit margins during inflationary periods. (36) The cost of sales is deducted from the revenue to calculate gross profit. (72) The company’s financial report showed a decrease in gross wages compared to the previous year. (59) Despite the decrease in gross profit, the company was able to maintain its market share.
Gross Margin sentence examples
(75) The cost of goods sold is an expense that is deducted from revenue to calculate gross margin. (73) The cost of goods sold is subtracted from a company’s revenue to calculate its gross margin. (69) The cost of goods sold is an essential component in determining a company’s gross margin. (67) Liability Accounts The gross margin for the quarter was negatively impacted by a decrease in sales volume. (60) The company’s gross margin was negatively affected by a decrease in customer demand.
- (42) The gross profit margin is calculated by dividing gross profit by revenue.
- (224) The company’s gross profit was impacted by supply chain disruptions, but management implemented new measures to mitigate the risk.
- (147) The management team is working on strategies to improve the company’s gross profit margin.
- 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.
- (67) The board of directors celebrated the achievement of reaching a milestone in gross earnings.
- (78) The company’s gross profit margin was negatively impacted by a decrease in customer demand.
- (41) The company’s gross profit margin is lower than expected due to increased costs.
(63) The profit statement revealed a decline in gross profit due to increased production costs. A company can gauge how well it manages the product-specific aspect of its business by subtracting its cost of goods sold from its net revenue. Gross profit helps determine whether products are being priced appropriately, whether raw materials are inefficiently used, or whether labor costs are too high. Gross profit helps a company analyze its performance without including administrative or operating costs. (68) The gross margin is calculated by subtracting the cost of goods sold from total revenue.
- (38) The company’s gross profit margin is a reflection of its competitive advantage.
- As mentioned earlier, it refers to a lump sum payment or a total amount that is paid or received without any breakdown or itemization..
- (46) The company’s gross margin is impacted by fluctuations in raw material costs.
- (68) The company’s gross profit was lower than expected due to a decrease in sales.

Gross profit gives a good measure of the incremental profit generated by the business for each additional sale made. Gross profit is usually show in the middle of the income statement, and represents the profit after deducting the costs which directly gross profit in a sentence generated the revenue. Now that you have a better grasp Legal E-Billing on how to use Gross Profit effectively, go forth and conquer the financial world! Remember, practice makes perfect, so don’t be discouraged if it takes some time to master this concept.
Gross Profit Margin sentence examples
(67) The board of directors celebrated the achievement of reaching a milestone in gross earnings. (65) The crime scene investigation revealed in gross negligence on the part of the security team. (28) The holiday season contributed to a surge in gross sales for the company. (88) The CEO emphasized the importance of increasing gross profit in the coming year. Now that you have a better grasp on how to use Gross Profit effectively, go forth and conquer the financial world! After all, you don’t want to end up like that one friend who thought they were a financial expert but ended up with their foot in their mouth.
- (45) The online store experienced a decline in gross sales during the summer months.
- (62) The gross profit margin for the company was higher than the industry average.
- (65) The crime scene investigation revealed in gross negligence on the part of the security team.
- (105) Net purchases are a key component in calculating the company’s gross profit margin.
- Companies often analyze gross profit to make strategic decisions, set pricing strategies, and evaluate performance over time.
- It represents the amount of money a company has made from its core business activities before accounting for other expenses like salaries, rent, and taxes.
A company’s gross profit will vary depending on whether it uses absorption or variable costing. Absorption costs include fixed and variable production costs in COGS, and this can lower gross profit. Variable costing includes only variable costs in COGS, and generally results in a higher gross profit because fixed costs are treated separately.
