gross margin decline

USAGE SUMMARY

The phrase "gross margin decline" is correct and usable in written English.
It can be used in financial contexts to describe a decrease in the difference between revenue and the cost of goods sold. Example: "The company's gross margin decline over the last quarter has raised concerns among investors about its profitability."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

2 human-written examples

Currie noted that Walgreen’s gross margin grew, in contrast to rival Rite-Aid’s gross margin decline reported on Thursday.

Forbes

Gross Margin On a year-on-year basis, the decline in our Devices & Services non-IFRS gross margin in the first quarter 2012 was driven primarily by the significant gross margin decline in Smart Devices and, to a much lesser extent, in Mobile Phones, partially offset by higher IPR royalty income.

TechCrunch

Human-verified similar examples from authoritative sources

Similar Expressions

58 human-written examples

From 1990 to 1998, Dell's gross margin declined from 33% to 23%, although operating margins increased from 8%to11%1%.

Harvard Business Review

Dell's gross margin declined to 17.2percentt from 19.9percentt, due to price cuts in Europe and elsewhere, and because the company deferred some revenue until the third quarter.

The New York Times - Tech

Last quarter, gross margin declined more than 18% compared with the year-ago quarter.

Forbes

Dell's third-quarter gross margin declined 1.5 percentage points from the previous quarter, to 18.5%.

Forbes

Revenue was flat year-over-year on a constant currency basis, while gross margin declined 180 basis points to 43.7%.

Forbes

However gross margin declined year over year too, dropping from 13.9percentnt in Q4 2015 to 10.5percentinQ4n Q4 2016.

TechCrunch

Maestri said that last year in Q4, the gross margin declined by 140 basis points sequentially so this year there is an expectation of about a 120 basis point decline.

Forbes

On a sequential basis, the decline in our Devices & Services non-IFRS gross margin in the first quarter 2012 was driven primarily by gross margin declines in both Smart Devices and Mobiles Phones, partially offset by a positive impact from lower warranty costs, which is expected to be non-recurring, and higher IPR royalty income.

TechCrunch

How? Cardinal has the industry's lowest cost structure, which allows it to raise operating margins even as gross margins decline.

Forbes

Expert writing Tips

Best practice

When reporting a "gross margin decline", provide context by explaining the contributing factors such as increased costs of goods sold, pricing pressures, or changes in product mix.

Common error

Avoid simply stating a "gross margin decline" without analyzing and explaining the underlying reasons for the decrease, such as increased competition or operational inefficiencies.

Linguistic Context

The phrase "gross margin decline" functions as a noun phrase that typically acts as the subject or object of a sentence. It describes a negative trend in a company's financial performance. As confirmed by Ludwig, it's usable in written English.

Expression frequency: Uncommon

Frequent in

News & Media

60%

Formal & Business

20%

Science

20%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "gross margin decline" is a grammatically sound and commonly used term in business and finance to describe a decrease in a company's profitability. As supported by Ludwig, the expression is valid and readily understandable in professional contexts. The frequency is classified as "uncommon", primarily appearing in news articles, business reports, and financial analysis. When using this phrase, it's essential to provide context by identifying the underlying factors contributing to the decline, which can range from increased costs to competitive pressures. Alternative phrases, such as "decrease in gross margin" or "reduction in gross margin", can be used to add variety to writing. However, simply stating a "gross margin decline" without further analysis may leave the reader with an incomplete understanding of the situation.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

decrease in gross margin

Replaces "decline" with the more general term "decrease".

reduction in gross margin

Uses "reduction" instead of "decline", indicating a lessening of the margin.

gross profit margin decrease

Specifies "gross profit margin" instead of just "gross margin".

erosion of gross margin

Employs "erosion" to suggest a gradual loss of the margin.

gross margin contraction

Uses "contraction" to imply a shrinking of the margin.

slippage in gross margin

Suggests a slight and unwanted fall in the margin.

gross margin compression

Implies a squeezing or tightening of the margin.

weakening of gross margin

Indicates a loss of strength or profitability in the margin.

deterioration of gross margin

Implies a worsening condition of the margin.

fall in gross margin

Uses "fall" which is a straightforward term indicating a decrease.

FAQs

What does "gross margin decline" mean in financial terms?

A "gross margin decline" indicates a decrease in the percentage of revenue remaining after subtracting the cost of goods sold. It suggests that a company is generating less profit from each dollar of sales.

What are some common causes of a "gross margin decline"?

Common causes include increased costs of raw materials, higher production expenses, pricing pressures from competitors, changes in product mix towards lower-margin items, and inefficiencies in operations.

How can I discuss a "gross margin decline" in a more positive or neutral way?

You can use terms like "decrease in gross margin" or "reduction in gross margin". Focus the context of the decline and suggest potential solutions to improve gross margin.

Is a "gross margin decline" always a sign of trouble for a company?

While a "gross margin decline" is generally a cause for concern, it's important to consider the context. It could be a temporary situation due to specific market conditions or strategic investments. A thorough analysis of the company's financials is necessary.