(162) The company’s profit and loss statement indicated a gross profit of $2 million in the gross. (143) The cost of goods sold is an essential component in calculating a company’s gross profit. (141) A higher gross profit margin allows for increased investment in research and development. (140) Despite the decrease in gross profit, the company was able to maintain its market share. (138) A company with a consistently high gross profit margin is considered financially stable. (136) A low gross profit margin may indicate that a company is struggling to generate profits.
Examples of Different Contexts
By examining gross profit margins, one can gauge the competitiveness of a business, its pricing power, and operational efficiency. In essence, the examples of sentences involving gross profit underline its significance in evaluating a company’s financial performance and long-term sustainability. Understanding the concept of gross profit is essential for anyone involved in business or finance. Gross profit is a fundamental metric that reflects the profitability of a company after deducting the cost of goods sold from its total revenue.
How To Use Gross Profit In a Sentence? Easy Examples
Products and services offered through the Rho platform are subject to approval. In it, we can find the gross profit, which in this case is labeled as gross margin. (222) Despite the fact that the company’s gross profit had been steadily increasing, they were still struggling to retain top talent. (209) The CFO presented a detailed report on the company’s gross profit, which included projections for the next quarter.
- (216) The company’s gross profit was affected by the fluctuating exchange rates, which made it difficult to plan for the future.
- And in a presentation about the merger, the supermarket chain says over the years the company has reduced its gross profit margins to keep prices down.
- (96) The company’s gross profit was lower than anticipated due to a decrease in sales.
- (214) The company’s gross profit was impacted by the supply chain disruptions, which led to delays in production and delivery.
- (54) The cost of goods sold is subtracted from revenue to determine gross profit.
Gross Profit in a sentence
(36) The cost of sales is deducted from the revenue to calculate gross profit. This is especially valuable for businesses operating across borders or handling multiple currencies. This tells us that for every shilling of sales, Sarah keeps 45 cents and Daniel keeps 52.5 cents to cover operating expenses and hopefully generate net profit. Net profit, on the other hand, accounts for all expenses—so even with strong gross profit, excessive overhead, taxes, or debt can retained earnings erode overall earnings. (234) Despite the fact that the company’s gross profit margin was higher than the industry average, they were still struggling to attract new customers.
(130) The company’s gross profit margin is a reflection of its efficiency in managing costs. (120) The company’s gross profit margin is affected by changes in sales volume and pricing. (108) The company’s gross profit margin was negatively impacted by a decrease in pricing. (105) Net purchases are a key component in calculating the company’s gross profit margin. (85) The gross profit margin is typically expressed as a percentage of total revenue. (84) The ratio analysis revealed that the company’s gross profit margin had declined.
(174) The company’s gross profit margin was negatively affected by an increase in raw material costs. (170) The perpetual Accounting for Marketing Agencies inventory method allows businesses to accurately calculate gross profit margins. These examples will illustrate the importance of gross profit in analyzing business profitability and making informed financial decisions. (228) While the gross profit had increased year-over-year, the company’s net income had actually decreased due to rising operating expenses.
Cost of Goods Sold (COGS)
(223) Although the company’s gross profit had declined slightly, they were able to offset the losses by increasing their sales volume. (219) The CEO announced a new cost-cutting initiative to increase gross profit, which was met with mixed reactions from employees. (218) Despite a challenging economic environment, the company’s gross profit margin remained stable, and investors were reassured. (208) Gross profit for the quarter was lower than expected, but the company’s long-term growth prospects remained strong. (200) The sales team was under pressure to increase revenue and gross profit, which led gross profit in a sentence to some aggressive tactics.
- (228) While the gross profit had increased year-over-year, the company’s net income had actually decreased due to rising operating expenses.
- This article breaks down their differences, why they matter, and how to use them to assess and improve financial health.
- (147) The management team is working on strategies to improve the company’s gross profit margin.
- (157) The company’s gross profit margin was negatively impacted by a decrease in customer demand.
- Deciding which to focus on depends on your business model and financial goals.
It’s all the money coming into your business from selling products or services. And in a presentation about the merger, the supermarket chain says over the years the company has reduced its gross profit margins to keep prices down. In conclusion, using the term “gross profit” in a sentence requires some understanding of what it means and how it is calculated. By providing context, comparing it to other metrics, and using it in questions or presentations, you can effectively communicate financial information to others.
- (78) The ratio analysis showed that the company’s gross profit margin had decreased.
- (119) The company’s gross profit margin was negatively impacted by rising production costs.
- (234) Despite the fact that the company’s gross profit margin was higher than the industry average, they were still struggling to attract new customers.
- (237) The CEO announced that the gross profit had exceeded expectations, but the shareholders were still concerned about the company’s long-term sustainability.
- Improving gross profit helps create a financial buffer that supports scaling and operational investments.
- By examining gross profit margins, one can gauge the competitiveness of a business, its pricing power, and operational efficiency.
Gross Profit: Meaning, Formula, and Real-World Examples
(236) The company’s gross profit margin was negatively impacted by a decrease in pricing, but the CEO announced plans to implement a new pricing strategy. (213) Gross profit for the quarter exceeded expectations, and the company’s management team credited strong sales performance. (189) The company’s gross profit margin is expected to improve next quarter due to cost-saving initiatives. (156) The gross profit margin is a key financial metric used to assess a company’s profitability. (147) The management team is working on strategies to improve the company’s gross profit margin. (126) A company with a low gross profit margin may struggle to cover its operating expenses.
