gross margin deterioration

USAGE SUMMARY

'gross margin deterioration' is a perfectly correct and usable phrase in written English.
It is used to refer to a decrease in the amount of profit a company makes after taking the cost of goods sold into account. For example, "Although the company's sales were up, gross margin deterioration led to a decrease in overall profits."

✓ Grammatically correct

News & Media

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

Gross profit margin (sometimes just called "gross margin") is different that gross profit.

WikiHow

Gross margin analysis for the past year reveal gross margins per ewe ranging from £41 to £71 and gross margins per hectare from £501 to £824.

Food and Agriculture Organization of the United Nations

Its adjusted gross margin stood at 26.8percentt.

The New York Times - Tech

The MT had 37% higher gross margin than ZT.

Soil and Tillage Research

Its gross margin rate increased 1.8 percentage points, to 29.1 percent.

The New York Times

I need to know is it gross margin?

The Guardian

They included net account receivables, net worth, net sales, gross margin, and operating profit margin.

The New York Times

Stay focused on revenue growth, not gross margin.

Harvard Business Review

No inventory, very high gross margin.

Forbes

Expert writing Tips

Best practice

When discussing "gross margin deterioration", provide context by specifying the period over which the decline occurred (e.g., "year-over-year" or "quarter-over-quarter").

Common error

Avoid using "gross margin deterioration" when the overall profitability decline is due to increased operating expenses rather than cost of goods sold. Gross margin focuses specifically on the difference between revenue and cost of goods sold; net profit considers all expenses.

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 decline or worsening in a company's gross profit margin. Ludwig indicates this phrase is perfectly acceptable in written English.

Expression frequency: Rare

Frequent in

News & Media

50%

Science

50%

Formal & Business

0%

Less common in

Academia

0%

Wiki

0%

Encyclopedias

0%

Ludwig's WRAP-UP

The phrase "gross margin deterioration" is a grammatically correct noun phrase used to describe a decline in a company's gross profit margin. While Ludwig AI confirms its validity, the phrase appears relatively infrequently in diverse source categories. It is commonly found in news, media, and scientific contexts, indicating a professional register. When using this phrase, it's helpful to provide context regarding the specific period of the decline and to avoid confusing it with a general net profit decline stemming from operating expenses. Alternatives include "decline in gross margin" or "erosion of gross margin".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

decline in gross margin

Rephrases the deterioration as a general decline.

decrease in gross margin

Uses "decrease" as a synonym for "deterioration".

erosion of gross margin

Implies a gradual and negative impact on the gross margin.

gross margin contraction

Uses the word "contraction" to indicate reduction in size or scope.

gross margin decline

Focuses on the downward trend of the gross margin.

worsening gross margin

Emphasizes the deteriorating state of the gross margin.

weakening gross margin

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

reduced gross margin

Directly states that the gross margin has been lessened.

shrinking gross margin

Highlights the diminishing size of the gross margin.

impairment of gross margin

Suggests the gross margin is not as good as it once was.

FAQs

How to use "gross margin deterioration" in a sentence?

You can use "gross margin deterioration" to describe a situation where a company's gross profit margin has decreased. For example, "The company experienced "gross margin deterioration" due to rising raw material costs."

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

Common causes of "gross margin deterioration" include increased cost of goods sold (such as raw materials or labor), decreased selling prices, or a shift in product mix towards lower-margin items.

What can I say instead of "gross margin deterioration"?

You can use alternatives like "decline in gross margin", "decrease in gross margin", or "erosion of gross margin" to convey a similar meaning.

How does "gross margin deterioration" impact a company's financial health?

Gross margin deterioration negatively impacts a company's financial health because it reduces the amount of profit available to cover operating expenses, potentially leading to lower net income or losses.