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financial terms




Gross Margin
Ratio of gross profit (sales revenue minus sales costs ) to sales revenue (a.k.a. "Sales", "Net Sales", "Net Revenue", "Revenue").
A
lso sometimes used as a synonym for gross profit.
Gross margin is a measure of a company's efficiency in turning raw materials into income.

Larry Carter, CFO, Cisco Systems, on gross margins for FY2003 2nd quarter results:
"Some time ago, we had a goal to get [gross margins to] 60%. We actually reached 69%, which was really incredible. What's more, we did over $1 billion this quarter in net profit after tax, which was approximately 21%. Operating expenses were 42% of sales."


 

  


  
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