Gross Sales

AAA

DEFINITION of 'Gross Sales'

A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge.

VIDEO

Loading the player...

BREAKING DOWN 'Gross Sales'

Gross sales is usually an important measure for those companies in the consumer retail industry. It measures the amount of product that a company sells relative to its competitors, and can also reflect consumer spending habits.

RELATED TERMS
  1. Doorbuster

    A marketing and sales strategy retailers use to get a high volume ...
  2. Gross Income

    1. An individual's total personal income before taking taxes ...
  3. Net Sales

    The amount of sales generated by a company after the deduction ...
  4. Expense

    1. The economic costs that a business incurs through its operations ...
  5. Cost Of Goods Sold - COGS

    The direct costs attributable to the production of the goods ...
  6. Like-For-Like Sales

    A comparison of this year's sales to last year's sales in a particular ...
Related Articles
  1. Markets

    Is Amazon Prime Actually Profitable?

    Learn whether Amazon Prime is actually profitable, and how this depends on whether you take a short-term or long-term focus on Amazon.
  2. Economics

    Understanding Gross Sales

    Gross sales represents the overall revenue of a company through its sales activities.
  3. Fundamental Analysis

    Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  4. Forex Education

    Understanding The Income Statement

    Learn how to use revenue and expenses, among other factors, to break down and analyze a company.
  5. Investing

    Doing More With Less: The Sales-Per-Employee Ratio

    If used properly, this ratio can give you insight into a company's productivity and financial health.
  6. Credit & Loans

    What's a Nonperforming Loan?

    A nonperforming loan is any borrowed sum where the borrower has failed to pay scheduled payments for at least 90 days.
  7. Economics

    Understanding Cost of Revenue

    The cost of revenue is the total costs a business incurs to manufacture and deliver a product or service.
  8. Economics

    Understanding Cash and Cash Equivalents

    Cash and cash equivalents are items that are either physical currency or liquid investments that can be immediately converted into cash.
  9. Economics

    Explaining Carrying Cost of Inventory

    The carrying cost of inventory is the cost a business pays for holding goods in stock.
  10. Investing

    How To Calculate Minority Interest

    Minority interest calculations require the use of minority shareholders’ percentage ownership of a subsidiary, after controlling interest is acquired.
RELATED FAQS
  1. What components are factored in determining net sales?

    The key components that factor into determining net sales include revenue, sales returns, allowances and discounts. Essentially, ... Read Full Answer >>
  2. What's an easy way of calculating gross sales in Excel?

    The easiest way to calculate gross sales in Excel is to use the PRODUCT and SUM functions. First, create a column that lists ... Read Full Answer >>
  3. What is the point of calculating gross sales?

    For companies, the calculation of gross sales is an important indicator of how well they are doing financially and how successful ... Read Full Answer >>
  4. What can gross sales tell you about a business?

    Gross sales demonstrate the amount of business activity undertaken by a company but do not reveal how much revenue was generated ... Read Full Answer >>
  5. Does location matter for taxes when calculating gross sales?

    Tax policies regarding gross sales differ by state and region. Some city jurisdictions, counties and states require a percentage ... Read Full Answer >>
  6. What are some examples of general and administrative expenses?

    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  2. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  3. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  4. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  5. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  6. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!