The gross profit margin compares gross profit to total revenue, reflecting the percentage of each revenue dollar that is ...

Subtract the costs from the revenue to determine the gross profit. 0.4 is the ratio of gross profit to revenue: $20/$50 = 0.4. In percentage terms, we get 40% by multiplying 0.4 by 100. The selling ...

Gross margin, on the other hand, expresses gross profit as a percentage of total revenue. Gross profit describes a company's top-line earnings; that is, its revenues less the direct costs of goods ...

Understanding the financial health of a business often begins with analyzing its profit margins. Two metrics normally used in ...