Gross Margin
Short definition
Gross margin is gross profit over revenue — the percentage spread between price and direct cost.
Detailed explanation
Mix by product, channel and customer moves the rate faster than the cash amount. Discounts, returns and volume rebates hide in net sales; booking them in marketing cosmetics gross margin.
Input and FX shocks hit here first. FIFO can lift gross margin temporarily in inflation; as the warehouse rolls, the margin normalises.
Why it matters for the CFO
List price, contract indexation and hedges are managed off this rate. Holding operating margin by cutting opex while gross margin falls defers a cash and competitive problem.
How it is calculated
Brüt marj = Brüt kâr / Satış gelirleri
Variables in the formula
- Gross margin: Gross profit / Revenue
How to read it
Volume can raise gross profit while the rate falls (a cheaper channel). Low utilisation presses the rate via fixed production cost. There is no universal threshold; contract form and commodity share dominate.
Numerical example
Gross profit 140 mn TL, sales 400 mn TL → gross margin = 140 / 400 = 35%.
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Definitions are educational. They are not investment, credit or tax advice.