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In business, Gross Margin Return on Inventory Investment (GMROII, also GMROI) [1] is a ratio which expresses a seller's return on each unit of currency spent on inventory.It is one way to determine how profitable the seller's inventory is, and describes the relationship between the profit earned from total sales, and the amount invested in the inventory sold.
"Gross margin" is often used interchangeably with "gross profit", however, the terms are different: "gross profit" is technically an absolute monetary amount, and "gross margin" is technically a percentage or ratio. Gross margin is a kind of profit margin, specifically a form of profit divided by net revenue, e.g., gross (profit) margin ...
Gross profit margin is calculated as gross profit divided by net sales (percentage). Gross profit is calculated by deducting the cost of goods sold (COGS)—that is, all the direct costs—from the revenue. This margin compares revenue to variable cost. Service companies, such as law firms, can use the cost of revenue (the total cost to achieve ...
Continue reading ->The post Gross Margin vs. Gross Profit appeared first on SmartAsset Blog. A company's financial health can be measured in different ways, including gross margin and gross profit ...
Contribution margin-based pricing is a pricing strategy which works without any mention of gross margin percentages or sales (Gross Merchandise Volume). (German:Deckungsbeitrag) It maximizes the profit derived from a company's assortment, based on the difference between a product's price and variable costs (the product's contribution margin per unit), and on one's assumptions regarding the ...
As its rivals have struggled, this has also given the company tremendous pricing power, which helped push up its gross margin to 57.8% last quarter from 54.3% a year ago. There have been reports ...
As for Apple, it lacks the growth prospects to maintain a P/E ratio north of 40. While its high-margin Services segment is growing by a double-digit percentage, the company's physical hardware ...
Gross margin is often used interchangeably with gross profit, but the terms are different. When speaking about a monetary amount, it is technically correct to use the term "gross profit", but when referring to a percentage or ratio, it is correct to use "gross margin".