erosion of gross margin

USAGE SUMMARY

The phrase "erosion of gross margin" is correct and usable in written English.
It can be used in financial or business contexts to describe a decline in the difference between sales revenue and the cost of goods sold. Example: "The company reported an erosion of gross margin due to increased production costs and competitive pricing pressures."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified similar examples from authoritative sources

Similar Expressions

60 human-written examples

"We expect its profits to decline in perpetuity as it will continue to lose market share to online retailers, downloading, and the supermarkets, leading to further erosion of gross margins," one analyst was quoted as saying by The Associated Press.

Forbes

Variability of gross margin is also higher under the yearly than under the monthly contract.

Journal of Dairy Science

I think there could be hundreds of basis points of gross margin expansion in 2009".

Forbes

(A) Box whiskers plots of gross margins per activity, dots are the observations.

Pastoralism

One report showed that intra-operative assessment of gross margins resulted in a 25% final margin positive rate [ 1].

Breast Cancer Research

A&F, which reported a profit in the year-earlier quarter, also warned of a "significant" erosion in gross margins and a low double-digit percentage fall in comparable sales as it enters the holiday shopping quarter with excess inventory.

Huffington Post

With increasing space elasticity, the impact of the gross margin effect rises even higher.

Business Research

Tesla's Q3 guidance also suggested a goal of 25% gross margin by Q4.

Huffington Post

Her commission is also 50% of the gross margin on the sales.

Bplans

The differences obtained between gross margin parameters of disease and no disease situations were calculated.

BMC Veterinary Research

Calculate simple financial numbers, such as gross margin, net income, and cost of goods sold.

Cornell University

Expert writing Tips

Best practice

When discussing financial performance, use "erosion of gross margin" to specifically highlight a gradual decline in profitability due to factors like increased costs or decreased revenue. Be sure to provide context about the causes of the erosion for clarity.

Common error

Avoid using "erosion of gross margin" interchangeably with "erosion of net margin". Gross margin refers specifically to revenue minus the cost of goods sold, while net margin accounts for all expenses. Using the wrong term can misrepresent the source of profitability issues.

Linguistic Context

The phrase "erosion of gross margin" functions as a noun phrase, typically serving as the subject or object in a sentence describing a company's financial performance. It highlights a negative trend in profitability. As confirmed by Ludwig, the phrase is grammatically correct and usable in English.

Expression frequency: Rare

Frequent in

News & Media

34%

Science

33%

Formal & Business

33%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "erosion of gross margin" is a grammatically sound and professionally recognized term used to describe a decline in a company's profitability, specifically concerning the difference between revenue and the cost of goods sold. As Ludwig AI confirms, it is suitable for financial and business contexts. While examples are relatively rare, the phrase appears across various authoritative sources like Forbes and The New York Times. Related phrases include "decline in gross margin" and "reduction in gross margin", offering similar meanings. It is important not to confuse gross margin with net margin, which reflects overall profitability after all expenses are considered. Overall, understanding and using this term correctly is crucial for accurate financial analysis.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

decline in gross margin

Replaces "erosion" with the more straightforward "decline", maintaining the same meaning.

reduction in gross margin

Substitutes "erosion" with "reduction", offering a less dramatic but equally accurate description.

decrease in gross margin

Uses "decrease" instead of "erosion", indicating a lessening of the gross margin.

narrowing of gross margin

Focuses on the margin becoming smaller, implying reduced profitability.

compression of gross margin

Suggests that the gross margin is being squeezed or compacted, leading to a decline.

weakening of gross margin

Indicates a loss of strength or stability in the gross margin.

impairment of gross margin

Implies damage or diminishment to the gross margin's value.

deterioration of gross margin

Signifies a gradual worsening of the gross margin.

shrinking gross margin

Highlights the reduction in size or scope of the gross margin.

thinning gross margin

Suggests the gross margin is becoming less substantial or less robust.

FAQs

How can I describe a decline in profitability instead of saying "erosion of gross margin"?

You can use phrases like "decline in gross margin", "reduction in gross margin", or "decrease in gross margin" depending on the context.

What factors typically contribute to the "erosion of gross margin"?

Common causes include increased cost of goods sold, price competition, changes in product mix, and inefficiencies in production.

Is "erosion of gross margin" always a negative sign for a company?

Yes, it generally indicates a decrease in profitability and can signal underlying issues within the business, such as rising costs or declining sales prices.

How is "erosion of gross margin" different from "erosion of profit margin"?

"Erosion of gross margin" specifically refers to the decline in the difference between revenue and the cost of goods sold. "Erosion of profit margin" is a broader term that can refer to a decline in any measure of profit, including gross profit, operating profit, or net profit.