Gross profit margin ratio is also called gross margin ratio.
A low gross profit margin ratio (or gross margin ratio) indicates that low amount of earnings, required to pay fixed costs and profits, are generated from revenues.

A low gross profit margin ratio (or gross margin ratio) indicates that the business is unable to control its production costs.
The gross profit margin ratio (or gross margin ratio) provides clues to the company’s pricing, cost structure and production efficiency.

The gross profit margin ratio (or gross margin ratio) is a good ratio to benchmark against competitors
The gross profit margin ratio (or gross margin ratio) is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio.

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