Gross Profit Margin
Is a company: no
Is a proper noun: no
- gross margin
- gross profit rate
- total revenue
- unit margins
- percentage margins
Definition of Gross Profit Margin
- The difference between the sales generated by a business and the costs paid out for goods or services.
Related Terms and Acronyms
- Pre-Tax Operating Income (PTOI) — Acronym,
- The operating income generated by a company, less expenses, before taxes have been paid.
- Break-Even Point (BEP) — Acronym,
- The point at which expenses meet income or savings. In home finance, the break-even point often refers to the time it takes to recoup the costs of refinancing a loan or paying discount points.
- Net Operating Loss (NOL) — Acronym, Very Important,
- A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
- Retained Earnings — Definition,
- All of the profits or losses accumulated from prior years and from the present year's income statement, minus dividends paid to you.
- Accounts Payable (AP, A/P) — Acronym,
- Money owed by a business for goods and services received.
- Operating Cash Flow (OCF) — Acronym,
- The money a company generates from its business operations. This revenue excludes costs from certain investments.
- Net Interest Margin (NIM) — Acronym,
- Net interest income (the difference between interest income and interest expense) as a percentage of average total assets.
- Cost of Goods Sold (COGS) — Acronym,
- An expense that appears on a business's income statement and represents the inventory cost of the goods sold during a particular period.
- Adjusted Cost Basis — Definition,
- The amount paid for an item, plus the amount paid for improvements, minus losses and depreciation. When the owner sells the item, the difference between the sales price and the adjusted cost basis is the profit or loss.
- Cash Flow Forecast — Definition,
- An estimate of when and how much money will be received and paid out of a business. It usually records cash flow on a month-by-month basis for a period of two years.
- Accounts Receivable (A/R, AR) — Acronym, Important,
- Money owed to a business by purchasers of goods and/or services.