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 Income
How to calculate Gross Profit
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.
Metrics related to Gross Profit
Cost Of Goods Sold
The Cost Of Goods Sold (COGS) is the measure of direct costs incurred by a company to manufacture or...
Net profit is the value that remains after all expenses are subtracted from the company’s total inco...
Earnings Before Interest, Taxes, Depreciation, and Amortization
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is one of a few profit metr...