gross margins

USAGE SUMMARY

'gross margins' is an acceptable term in written English.
It is typically used when referring to a company's financial performance. For example, "The company's gross margins improved significantly this quarter."

✓ Grammatically correct

Formal & Business

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Gross margins will be slightly better than the comparable industry gross margins.

Bplans

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

Animal Feed Science and Technology

Gross margins were 24.9percentt.

The New York Times

"They crushed gross margins," Mr. Specker said.

The New York Times

Gross margins declined 0.8 percentage points to 27.5percentt.

The New York Times

Nobody expected gross margins to be this bad".

The New York Times - Tech

The program also increases farm gross margins on average.

Agricultural Systems

"But everyone worries about their long-term gross margins".

The New York Times - Tech

The gain came from higher sales and higher gross margins.

The New York Times

As the leading manufacturer, IBM enjoyed 40% gross margins.

Harvard Business Review

Start with gross margins.

Forbes

Expert writing Tips

Best practice

When discussing a company's financial health, specify the period (e.g. quarterly, annually) when referencing "gross margins" to provide context.

Common error

Be careful not to use "gross margins" interchangeably with net margins. "Gross margins" only consider the cost of goods sold, while net margins account for all expenses, providing a comprehensive view of profitability.

Linguistic Context

The phrase "gross margins" functions as a noun phrase, typically serving as the subject or object in sentences discussing financial performance. Ludwig AI indicates this is a grammatically correct phrase widely used in financial contexts.

Expression frequency: Very common

Frequent in

Formal & Business

33%

News & Media

33%

Science

34%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "gross margins" is a grammatically sound and frequently used noun phrase in financial and business contexts. According to Ludwig, it is considered an acceptable term in written English when referring to a company's financial performance. This term plays a vital role in assessing a company's profitability by indicating how efficiently it generates revenue from its products or services after accounting for the direct costs of production. It's essential to not confuse "gross margins" with net margins. Its register is primarily professional, aligning with its common use in formal business reports, news articles, and financial analyses. Various alternative phrases, such as "profit margins" or "operating margins", can be used depending on the specific aspect of profitability you want to highlight.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

profit margins

Emphasizes the profit aspect of the margin, focusing on the percentage of revenue remaining after deducting costs.

operating margins

Highlights the profitability of a company's core operations before accounting for interest and taxes.

net profit margin

Focuses on the profit remaining after all expenses, including taxes and interest, have been deducted.

profitability ratios

A broader term that encompasses various metrics used to assess a company's ability to generate profits.

margin of profit

Similar to profit margins, but may refer to the absolute value of the profit rather than a percentage.

earnings margins

Highlights the earnings generated relative to revenue, emphasizing the earnings component.

cost-effectiveness ratios

Focuses on the relationship between costs and effectiveness, particularly in assessing the value of investments.

financial performance metrics

A more general term that includes a range of metrics used to evaluate a company's financial health and performance.

business profitability

Focuses on profitability of a business rather than a specific margin calculation.

economic profitability

Focuses on profitability from an economics point of view, accounting for the cost of capital employed.

FAQs

How are "gross margins" calculated?

"Gross margins" are calculated by subtracting the cost of goods sold (COGS) from revenue and then dividing by revenue. This result is often expressed as a percentage.

What does it mean if a company's "gross margins" are increasing?

Increasing "gross margins" typically indicate that a company is becoming more efficient in its production process or is able to charge higher prices for its products. It could also mean the company is reducing costs of goods sold.

How do "gross margins" differ from operating margins?

"Gross margins" reflect the profitability of a company's production process, while operating margins take into account operating expenses such as sales, general, and administrative costs. Operating margins provide a broader view of profitability than "gross margins".

Why are "gross margins" important for investors?

"Gross margins" are important for investors because they provide insight into a company's ability to generate profit from its core business activities. They can also be used to compare the profitability of different companies within the same industry.