Gross Profit Margin

Gross profit margin.

• Gross profit margin = Gross Profit / Turnover
• Gross Profit = Turnover – Cost of Goods Sold
• It shows the percentage of Gross Profit in relation to final Sales.
• It shows the operational efficiency of a company as well as its pricing policy.
• The higher the prices it receives, the more sales effect the final result, and allows
• the company to cover its expenses and present a satisfactory gross profit