What remains from sales after a company pays out the cost of goods sold. To obtain gross profit margin, divide gross profit by sales. Gross profit margin is expressed as a percentage.For example, if a company receives $25,000 in sales and its cost of goods sold were $20,000, the gross profit margin would be equal to $25,000 minus $20,000, divided by $25,000, or 20%. Basically, 20% gross profit margin means that for every dollar generated in sales, the company has 20 cents left over to cover basic operating costs and profit.
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A financial metric used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.
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Gross margin (also called gross profit margin or gross profit rate) is the difference between revenue and cost before accounting for certain other costs. Generally ...
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Use this business calculator to compute the gross profit margin needed to run your business.
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Gross Profit Margin can be calculated by dividing gross profit by total revenue. Gross profit margin tells investors the percentage of revenue that is used in the ...
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Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. Gross Profit Margin. A measure of how well a ...
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Gross Profit Margin - read about Definition of Gross Profit Margin, How to Calculate the Operating Profit Margin, How to Calculate Gross Profit Margin Ratio , What ...
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Definition of gross profit margin: What remains from sales after a company pays out the cost of goods sold. To obtain gross profit margin, divide gross profit by ...
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The gross profit margin ratio measures how efficiently a company uses its resources, ... A high gross profit margin ratio indicates that a business can make a ...