How To Use Gross Profit In a Sentence? Easy Examples

(76) The income summary account is used to calculate the gross profit of a business. (62) The gross bookkeeping profit margin for the company was higher than the industry average. (42) The gross profit margin is calculated by dividing gross profit by revenue.

How to Calculate Gross Profit from Net Profit

(56) The gross profit analysis revealed areas where cost reductions could be made. (49) LIFO can result in higher gross profit margins during inflationary periods. (45) The income summary account is used to calculate the company’s gross profit. (40) The company’s gross profit margin is a reflection of its pricing strategy.

Beyond the Number: Understanding Gross Profit Margin

• It’s all the money coming into your business from selling products or services.
• Gross profit is the revenue minus the direct cost of producing the product or service.
• Profit is a key measure of business success, but not all profit metrics tell the same story.
• Adjusting factors like the price of a product, negotiating for cheaper raw materials, and effective marketing campaigns can all result in gross profit margin changes.
• Understanding the concept of gross profit is essential for anyone involved in business or finance.
• Gross profit margin is also used by stock market analysts and individual investors to compare one company to another.

(35) The profit-and-loss statement revealed a decline in gross profit margin. “Our proven scale efficiencies have been enhanced by our investment in AI, which has driven down operating expenses and improved gross profits,” it said. The same split also applies to cost of goods sold, which is labeled cost of revenue in this case.

Compare Meanings

(142) The cost of goods sold is a key component in determining a company’s gross profit margin. (139) A low gross Bookkeeping for Painters profit margin may indicate that a company is struggling to generate revenue. (131) The company’s gross profit margin is impacted by changes in the cost of raw materials.

Mixing Up Operating Expenses and COGS

(122) The gross profit for the quarter was lower than expected due to increased competition. (106) The gross profit of the restaurant was higher than gross profit in a sentence 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. (96) The company’s gross profit was lower than anticipated due to a decrease in sales.

Forgetting to Include All Direct Costs

• (77) The cost of sales is a key component in calculating the company’s gross profit.
• (213) Gross profit for the quarter exceeded expectations, and the company’s management team credited strong sales performance.
• (179) The gross profit margin is a useful tool for comparing the profitability of different companies.
• (68) The company’s gross profit was lower than expected due to a decrease in sales.
• (227) The company’s gross profit was higher than expected, but the marketing team was concerned about the negative feedback from customers.
• ‍Rho is a fintech company, not a bank or an FDIC-insured depository institution.

(59) The company’s horizontal analysis revealed a decrease in gross profit margin. These non-COGS expenses are important, but they’re considered operating expenses, not direct costs of goods sold. Gross profit is the money left over from your sales after subtracting the direct costs of making your product or delivering your service. Rho helps businesses streamline their financial operations by centralizing cash flow, expense tracking, and payments—all in one platform.

Gross Profit vs Net Profit: Understanding the Key Differences

(192) The gross profit margin is a measure of a company’s profitability before deducting operating expenses. (186) Despite a decrease in gross profit, the company’s net income increased due to cost-cutting measures. (169) The gross profit margin can be calculated by subtracting the cost of goods sold from revenue. (153) The accounting function helps businesses determine the cost of goods sold and gross profit. (81) The company’s gross profit margin is lower than expected due to increased costs.