Gross Margin: Definition and additional resources from BNET
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BNET Business Dictionary

Business Definition for: Gross Margin

  • the differential between the interest rate paid by a borrower and the cost of the funds to the lender.
  • the differential between the manufacturing cost of a unit of output and the price at which it is sold
  • Abbr. GM

Additional Resources

Incorporating Price And Inventory Endogeneity In Firm-Level Sales Forecasting
As numerous papers have argued, sales, inventory, and gross margin for a retailer are interrelated. A simultaneous equation model is constructed to establish these interrelationships at a firm level. Using publicly available financial data the six causal effects among sales, inventory, and gross margin are estimated. The results show that...
Tags: Sales strategy, Sales force management, gross margin, sales, financial
White papers 2007-01-09
Profit Margin Calculator
This calculator can help you determine the selling price for your products to achieve a desired profit margin. By entering the wholesale cost, and either the markup or gross margin percentage, it calculates the required selling price and gross margin.
Tags: profit margin
Tools & templates 2008-01-01
The Better Performing Half of Potash Corp. (Part I)
Carl Martin submits: In the year 2007, which might seem like ancient history to some people by now, Potash Corp POT reported 1,881.2 million as total gross margin. Of this amount, 912.3 or 48.5%, came from the over-hyped potash segment, while 968,9 or 51.5%, came from the under-hyped nitrogen and...
Tags: Materials/Industrials
External links 2008-07-01
Gross Margin Drivers at Potash Corp. (Part II)
Carl Martin submits: See: The Better Performing Half of Potash Corp. Part I In order to better understand Potash Corp. POT, it's necessary to dig deeper down to the level of, what I call the gross margin drivers and what Potash Corp calls gross margin contributers. I agree ,of course,...
Tags: Materials/Industrials
External links 2008-07-06
Case Study: Are Your Profits "Leaking" Away? A Distributor's Story
Does the listed Gross Margin for an account actually reflect the real Gross Margin? The answer astoundingly no! Various hidden price factors can allow money to leak away from ones profits, and ultimately ones bottom line. By tightening these "leaks", all operating costs to service a customer are properly accounted...
Tags: revenue
White papers 2003-01-01
How to Handle Price Buyers
Article explains a myth, "But we have to justify our prices to our customers!" One of the oldest tricks for a customer to demand that sellers justify their prices. Nothing is more absurd. The basic problem with trying to justify the prices is that the customer does not want...
Tags: Pfingsten Publishing, operating margin, tool
White papers 2003-01-01
The 2008 Historic Potash Handoff (Part V)
Carl Martin submits: The next step in this ongoing series of articles on Potash Corp POT is to look at the 2008 first quarter results for the total gross margin. For the period, the total gross margin was 856.0 million, which was a 131.5% increase over the the 2007 first...
Tags: Materials/Industrials
External links 2008-07-16
Apple: Margin Worries a Core Issue for Analysts
Eric Savitz (Barron's) submits: Several issues emerged for Apple AAPL in the wake of last night’s earnings report for the company’s fiscal third quarter and the subsequent conference call with the Street see transcript. Yes, one issue is the company’s refusal to directly respond to the ongoing Street...
Tags: Apple Inc., Hardware
External links 2008-07-22
Why the Sales Funnel is Outdated
Why the Sales Funnel is OutdatedYes it is outdatedWith years of experience in selling, sales management and sales training I can certainly agree with some of the points that Mark makes, however one important ingredient is missing.Would anyone, as a business owner or shareholder, want to see a salesperson generate...
Tags: Sales strategy, Sales force management, Operational accounting, salesperson, sales, Sales Funnel, revenue
Discussion threads 2008-05-22
Analysts Weigh in on Apple Earnings; 10-15 Points More Downside?
Notable Calls submits: Several firms are out with comments on Apple AAPL following results out last night: - Piper Jaffray maintains their Outperform and $250 target saying that while the focus today will be anxiety over gross margin, they expect by the end of the September quarter, the Street...
Tags: Apple Inc., Gadgets
External links 2008-07-22
Micron Beats Consensus, But Misses Forecast
Eric Savitz (Barron's) submits: Micron Technology MU this afternoon reported revenue for its fiscal third quarter ended May 29 of $1.5 billion, slightly better than the Street consensus of $1.47 billion. The company lost 30 cents a share in the quarter, two cents worse than the Street had forecast....
Tags: Micron Technology Inc., Chip
External links 2008-06-26
Hey CFO, "What's Wrong With Sales Incentives?"
In the 1960s view of the world, a sales rep went out and developed a territory by selling and servicing a geographical set of customers. They were typically paid some percentage of the generated gross margin dollars upon transaction invoicing. They operated in a "Lone Ranger" mode and sold themselves...
Tags: Sales strategy, Sales force management, sales, revenue, performance
White papers 2005-12-16
Margin Notes: The View From the top
According to the report credit available in the equity markets continued to surge. The increase in margin debt heightened concerns over leverage and fears of speculative excesses & boosted both interest in the issue & support for an increase in margin requirements. The Federal Reserve has indicated that it is...
Tags: Investment, Financial services, Securities Industry Association, equity
White papers 2000-04-18
2007 Cost Impacts at Potash Corp. (Part III)
Carl Dincesen submits: This is part III of my analysis on Potash Corp. POT see parts I and II. The magic number to start with is 1049.2 million. This number represents the 2007 subtotal impact of volume/price/other of all three segments combined, on the total gross margin increase. From this...
Tags: Materials/Industrials
External links 2008-07-09
Deflations Profit Squeeze
The crosshairs of deflationary product price trends and rising payroll costs are triggering an unprecedented gross profit squeeze for distributors who rely solely on margin mark-up pricing. Here is the evidence on deflation in the industrial economy, the profit impact of these trends, and three strategies for survival. Deflation wreaks...
Tags: Currency & Foreign exchange, Operational accounting, payroll solutions, Pembroke Consulting Inc., deflation, payroll cost, payroll, compensation, income statement, income, supply chain, strategy, pricing strategy, supplier, analysis
White papers 2003-01-01
Profitability Ratios
This article describes set of ratios to assess the profitability of your business and changes in its profit performance. These ratios are probably the most important indicators of your business's financial success. Investors will be interested in these ratios insofar as they demonstrate the performance and growth potential of the...
Tags: CCH Inc., net profit, operating profit, profit margin, equity, performance, financial
White papers 2003-01-01
Gross Up Payroll Calculator
Calculate gross pay before federal withholdings, federal, state, FICA, and local deductions and exemptions are withheld using this tool. It is a quick, convenient, easy way to calculate gross wages.
Tags: payroll solutions, payroll, tool
Tools & templates 2008-01-01
Walmart 2003 Annual Report
"This is a Walmart Annual Report for the year 2002. On the covers of this Annual Report, one will see Associates from two of our 4,600-plus store locations around the globe. These eight individuals represent more than 1 million Associates worldwideeach one dedicated to providing the...
Tags: net income, Wal-Mart Stores Inc., sales
White papers 2003-01-01
Sapiens International - Annual Report 2002
This is the annual report of the Sapiens International. The year 2002 marked the beginning of a new chapter in the history of Sapiens. Sapiens delivered on its promise to establish a strong foothold in the global insurance industry, while improving the Companys financial performance. The 2002 financial results reflect...
Tags: Sales strategy, Operational accounting, Sapiens International, revenue, Software Solution, financial, sales, insurance, pricing strategy, performance, software
White papers 2003-01-01
Investing with Borrowed Funds: No "Margin" for Error
Investor purchases of securities "on margin" have grown dramatically in recent months. As NASD recently reported, the amount of debt taken on to buy securities reached $174 billion in July, an increase of over 25% since the beginning of the year. Some commentators see this growth as a sign that...
Tags: Financial accounting, NASD, investor, security
White papers 2003-09-11
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