Gross Profit

Date created: Oct 12, 2022  •   Last updated: Oct 12, 2022

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.

Gross Profit Formula

ƒ Sum(Revenue) - Sum(COGS)

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.

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How to visualize Gross Profit?

Use a summary chart to visualize your Gross Profit data and compare it to a previous time period.

Gross Profit visualization example

Gross Profit

$99k

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4.76

vs previous period

Summary Chart

Here's an example of how to visualize your current Gross Profit data in comparison to a previous time period or date range.
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Gross Profit

Chart

Measuring Gross Profit

More about Gross Profit

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).