decrease in gross margin

USAGE SUMMARY

The phrase "decrease in gross margin" is correct and usable in written English.
It can be used in financial or business contexts to describe a reduction in the difference between sales revenue and the cost of goods sold. Example: "The company reported a significant decrease in gross margin this quarter, prompting a review of its pricing strategy."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

There was also a slight decrease in gross margin, which measures sales minus the cost of producing goods.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

59 human-written examples

Industry analysts said that while the company should not welcome any decrease in gross margins, this particular case was not as damaging as some circumstances -- for instance, if Sun were dropping prices for its servers amid a price war.

The New York Times

In the outlook section, Apple said that it expects flat revenue for Q3 2013 and a decrease in gross margins to 36-37 percent.

TechCrunch

These innovative systems had better environmental performances than the systems currently used in the Ile-de-France region, with no decrease in gross margins.

Field Crops Research

"We remain cautious as pricing fell a full 15% quarter-over-quarter, below our estimate of a 6% quarter-over-quarter decline, which caused the decrease in gross margins," J.P. Morgan said.

Forbes

HRE-LH farmers experienced a disappointing decrease in food self-sufficiency and MRE farmers were disappointed by the marginal improvement in gross margin.

European Journal of Agronomy

The adoption of composting practices allowed a slight increase in gross margin associated with a decrease in its between-year variability in comparison with conventional practices.

Agricultural Systems

This increase in gross margin is important to profitability.

Bplans

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

Animal Feed Science and Technology

Investors should look for both sequential and year-over-year growth in gross margins.

Forbes

"Any gains in gross margins can help drive the earnings higher".

Forbes

Expert writing Tips

Best practice

When discussing a "decrease in gross margin", provide context by explaining the factors contributing to the decline, such as increased costs, decreased sales, or changes in pricing strategies.

Common error

Avoid attributing a "decrease in gross margin" solely to internal issues. Consider external factors like market competition, economic downturns, or changes in consumer demand that may be affecting profitability.

Linguistic Context

The phrase "decrease in gross margin" functions primarily as a noun phrase. It identifies a specific financial event or condition, which is a reduction in the difference between revenue and cost of goods sold. As Ludwig AI confirms, it's suitable for formal contexts.

Expression frequency: Common

Frequent in

News & Media

35%

Science

33%

Formal & Business

32%

Less common in

Ludwig's WRAP-UP

In summary, "decrease in gross margin" is a noun phrase commonly used in business and finance to describe a reduction in profitability. As Ludwig AI underlines, the phrase is correct and suitable for formal contexts. When using the phrase, providing context about the reasons for the decrease and considering external factors is essential. Alternative phrases include "gross margin erosion" and "decline in gross profitability". The phrase appears frequently in News & Media, Science, and Formal & Business contexts, highlighting its relevance across various professional domains.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Reduction in gross margin

Uses "reduction" as a direct synonym for "decrease".

Shrinking gross margin

Focuses on the diminishing size of the gross margin.

Fall in gross margin

Uses "fall" to indicate a downward trend in the gross margin.

Contraction of gross margin

Implies a shrinking or tightening of the gross margin.

Lowering of gross margin

Emphasizes the action of reducing the gross margin.

Gross margin erosion

Focuses on the gradual decline of the gross margin.

Gross margin compression

Indicates a squeezing or narrowing of the gross margin.

Decline in gross profitability

Emphasizes the profitability aspect of the margin.

Deterioration of gross margin

Suggests a gradual decline in the quality or value of the gross margin.

Worsening gross margin

Highlights the negative impact on the gross margin.

FAQs

What are some other ways to say "decrease in gross margin"?

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

What factors typically lead to a decrease in gross margin?

Common causes include increased cost of goods sold, decreased sales prices, changes in product mix, increased competition, and economic downturns. Addressing these factors is crucial for mitigating the "decrease in gross margin".

How does a decrease in gross margin affect a company's financial health?

A "decrease in gross margin" can signal potential financial distress, reduced profitability, and decreased ability to cover operating expenses. It often leads to lower net income and reduced investor confidence.

Is a decrease in gross margin always a negative sign for a company?

While generally a negative sign, a temporary "decrease in gross margin" may occur due to strategic decisions like promotional pricing or investments in new products. However, a sustained decrease warrants careful analysis and corrective action.