Gross margin deterioration

USAGE SUMMARY

The phrase "Gross margin deterioration" is correct and usable in written English.
It can be used in financial or business contexts to describe a decline in the gross margin, which is the difference between revenue and cost of goods sold. Example: "The company's recent financial report indicated a significant gross margin deterioration, raising concerns among investors."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

2 human-written examples

"There was a gross margin deterioration in the quarter and the question is, does that continue into the new year," he said.

The Guardian - Business

"Furthermore, unlike Q1, we suspect gross margin deterioration to be a factor as management seeks to clear inventory build-up".

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

58 human-written examples

We are now forecasting just 4% volume growth, in line with its distribution channel, and already have margin deterioration as a result of the price declines baked in.

The Guardian - Business

Gross margin 41.7%.

TechCrunch

"Conversely, our outlook would worsen on margin deterioration and market share losses in the optical and enterprise businesses".

Forbes

Margin Deterioration: Generally, a flower shop's payroll should eat up 30% of sales, and the cost-of-goods-sold another 30%-33 30%-33

Forbes

Gross margin was 41.7%.

TechCrunch

Gross margin in the first quarter was 60.2%.

Forbes

"Our stance on the DRAM market remains conservative, as we expect DRAM suppliers to show more visible margin deterioration beginning in the calendar second quarter," said Merrill Lynch.

Forbes

Gross margin higher than 65%.

Bplans

Gross margins over 20 years and year-to-year variation in gross margins were assessed.

Animal Feed Science and Technology

Expert writing Tips

Best practice

When discussing "gross margin deterioration", quantify the extent of the decline with specific figures to provide context and emphasize the significance of the issue.

Common error

Don't attribute "gross margin deterioration" to vague factors. Instead, identify specific contributing causes such as increased costs of goods sold, pricing pressures, or changes in product mix.

Linguistic Context

The phrase "gross margin deterioration" functions as a noun phrase, typically serving as the subject or object of a sentence. It describes a process or state of decline in a company's gross profit margin, as confirmed by Ludwig AI.

Expression frequency: Rare

Frequent in

News & Media

60%

Formal & Business

30%

Science

10%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "gross margin deterioration" describes a decline in a company's profitability, specifically the difference between revenue and cost of goods sold. Ludwig AI confirms its grammatical correctness, primarily found in financial and business contexts. Alternatives include "decline in gross profit margin" and "gross margin erosion". When using this phrase, quantify the decline with specific figures and identify contributing causes. It is most frequent in "News & Media" and "Formal & Business" publications.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Gross margin decline

A simple and direct way to state the decrease.

Reduction in gross margin

Focuses on the fact that it got reduced. Almost identical meaning.

Decline in gross profit margin

Focuses on the decrease itself rather than the process of deterioration.

Falling gross margin

Uses 'falling' to indicate a downward trend in the gross margin.

Gross margin erosion

Uses 'erosion' to suggest a gradual wearing away of the gross margin.

Worsening gross margin

Highlights the negative change in the gross margin.

Gross margin compression

Emphasizes the squeezing or reduction of the gross margin.

Shrinking gross margin

Indicates a reduction in the size of the gross margin.

Deterioration of profit margins

Broader term indicating a decline in overall profit margins, not specifically gross margin.

Weakening gross margin

Suggests a loss of strength or health in the gross margin.

FAQs

What does "gross margin deterioration" mean?

It refers to a decline in the difference between a company's revenue and its cost of goods sold, indicating reduced profitability from core business activities.

What are the common causes of "gross margin deterioration"?

Common causes include increased costs of raw materials, higher production expenses, decreased selling prices, and changes in sales mix toward lower-margin products.

How can a company address "gross margin deterioration"?

Strategies include reducing production costs, negotiating better supplier pricing, increasing sales prices, and focusing on sales of higher-margin products. Also improve operational "efficiency".

What are some alternatives to "gross margin deterioration"?

You can use alternatives like "decline in gross profit margin", "gross margin erosion", or "worsening gross margin" depending on the specific context.