Gross Profit
What is Gross Profit?
Gross Profit is the amount left over from total revenues after Cost of Goods Sold (COGS) has been deducted. COGS will typically include the cost of making and selling the product or the cost of services provided by the company.
Alternate names: Gross IncomeHow to calculate Gross Profit
Example
An Oil & Gas company generated a total revenue of $1 million in 2019, and incurred a COGS of $400,000 in that same year. Therefore, the company's gross profit for 2019 was $600,000.
More about this metric
Gross Profit indicates how well a company uses its labour and supplies to produce goods and services. This measure only considers variable costs, such as direct labor or commission, as opposed to fixed costs, such as rent or insurance.
Gross Profit is always expressed as a monetary value. It’s equally important to look at Gross Profit as a percentage of Revenue (Gross Margin or Gross Margin Percentage).
Track this metric
Use PowerMetrics, a free, self-serve analytics tool, to monitor your Gross Profit data.
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Gross Profit vs Net ProfitGross Profit vs Gross MarginDate created: Feb 21, 2019
Last updated: Mar 15, 2021
Metrics related to Gross Profit
Cost Of Goods Sold
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Net Profit
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