Why will a business prefer to declare a high gross profit margin?

A business will want to declare a high gross margin as it will mean that the gap between its costs and revenues/prices remains healthy. This should allow it to absorb business expenses and still have sufficient money over to invest, pay tax and reward shareholders with a dividend. However, always look at trends, compare like with like and note that some industries work on smaller margins than others.

Be the first to comment on "Why will a business prefer to declare a high gross profit margin?"

Leave a comment

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.