Gross Profit Margin on Sales

Definition:

Gross Profit Margin on Sales is one of the key performance indicators. The gross profit margin gives an indication on whether the average markup on goods and services is sufficient to cover expenses and make a profit. GPM shows the relationship between sales and the direct cost of products/services sold. It measures the ability of both to control costs and to pass along price increases through sales to customers. The gross profit margin should be stable over time. A persistent gradual decrease is likely to indicate that productivity needs to be increased to return profitability back to previous levels.

Related terms:

Cost-benefit

Useful articles:

»	Sales Training--Fact or Fraud?
»	What Is a Professional
»	Five Ways To Sabotage Your Business
»	Why Buying is Better from the Competition

Phone Bill

This calculator is designed to help you estimate the total phone charge at any time

Rent vs Buy

Determine whether it is a better financial decision to rent or to own a home

Refinance

Figure your principal and interest payments, how much you would save each month

Browse by categories

Accounting	Advertising	Banking
Bankruptcy	E-Commerce	Economics
Finance	Law	Investment
Insurance	Marketing	Real estate
Statistic	Trade	Purchasing

Featured Articles:

Marketing

I WANT To Be An Online Marketer!

Where do I start if I want to be an online marketer? Tough question, huh?

There are lots of ways to begin your way on the bumpy journey. Just make sure you are aware that it WILL be a... [ more... ]

Business & Financial

The Business Meeting

You've received an invite to attend a meeting. You're not exactly anti-meeting. In fact, you can recollect attending one or two meetings in your lifetime in which something was actually accomplishe... [ more... ]

Career

Seminar Siring Strategies

1. Create your seminar intuitively:

A topic title was assigned to me by the meeting planner. It was within my field of expertise. And I had no seminar outline that would fit this group. S... [ more... ]