Explore commonly used personal finance terms.
Adjusted Gross Margin Ratio measures a company’s profit margin after excluding one-time or irregular expenses, providing a clearer view of recurring profitability. This ratio is especially useful for comparing profitability across periods by filtering out factors that do not reflect core operations, helping analysts assess operational efficiency. For investors, the adjusted gross margin ratio offers insights into sustainable profitability and is often used when evaluating businesses with fluctuating costs or non-recurring events.
