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 Margin,
Gross Income
How to calculate Gross Profit
ƒ
(Revenue) - (COGS)
Favourable trend
Up is positive
Level of complexity
Beginner
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Date created: Feb 21, 2019
Latest update: May 15, 2019
Tell me 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).