Explore commonly used personal finance terms.
Adjusted gross margin reflects a company’s gross profit after factoring in specific adjustments, such as promotional discounts, rebates, or one-time costs. This margin provides a clearer view of ongoing profitability by isolating core business performance, making it valuable for comparing operational efficiency across periods. Investors use adjusted gross margin to understand a company’s real profit from sales, ensuring one-time costs don’t distort long-term trends.
