Use gross profit in a sentence The best 46 gross profit sentence examples

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Use gross profit in a sentence The best 46 gross profit sentence examples

clock25 Oct 2022 | 06:13 PM

gross profit in a sentence

Remember, practice makes perfect, so don’t be discouraged if it takes some time to master this concept. 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. Gross profit is the income remaining after production costs have been subtracted from revenue. It helps investors determine how much profit a company earns from the production and sale of its products.

gross profit in a sentence

What is Net Profit Margin?

gross profit in a sentence

(72) The company’s financial report showed a decrease in gross wages compared to the previous year. (38) The financial report showed a decline in gross income compared to last year. (83) The gross margin is an important factor considered by investors when retained earnings balance sheet evaluating a company’s performance. (80) The gross margin is a measure of the company’s ability to generate profit from its core operations. (79) The gross margin is a key performance indicator that management focuses on to drive profitability.

gross profit in a sentence

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(37) The smell of the fish market was in gross and lingered in the air for hours. (30) The actor’s performance 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.

How To Use Gross margin In A Sentence

Understanding how gross profit to construct sentences with the word “gross” is essential for effective communication. Whether used to describe something that is unpleasant, excessive, or even a monetary value before deductions, the word “gross” adds depth and specificity to a sentence. By analyzing a range of examples, we can grasp the nuances of this word and how it can influence the overall message being conveyed.

  • (64) The profit statement indicated a decline in gross profit due to increased production costs.
  • (136) A low gross profit margin may indicate that a company is struggling to generate profits.
  • (79) The gross margin is a key performance indicator that management focuses on to drive profitability.
  • Net profit margin is the percentage of revenue left after all expenses, including operating costs, interest, taxes, and preferred stock dividends, have been deducted.
  • See how AI-powered collaboration helps finance teams align faster and drive clarity, ownership, and action across the business.
  • Gross profit will consider variable costs, which fluctuate compared to production output.
  • (151) The profit statement revealed a decline in gross profit due to increased production costs.

(77) The cost of sales is a key component in calculating the company’s gross profit. (72) The inventory valuation is used to calculate the company’s gross profit margin. (62) The gross profit margin for the company was higher than the industry average. (42) The gross profit margin is calculated by dividing gross profit by revenue. Dani’s Apparel retains about 42.9% of its revenue after covering the direct costs of production. Rather than relying on manual calculations, you can prepare financial statements instantly.

gross profit in a sentence

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