gross profit margin
Definition
What remains from sales after a company pays out the cost of goods sold. To obtain gross profit margin, divide gross profit by sales. Gross profit margin is expressed as a percentage.For example, if a company receives $25,000 in sales and its cost of goods sold were $20,000, the gross profit margin would be equal to $25,000 minus $20,000, divided by $25,000, or 20%. Basically, 20% gross profit margin means that for every dollar generated in sales, the company has 20 cents left over to cover basic operating costs and profit.
This content can be found on the following page:
http://www.investorwords.com/2250/gross_profit_margin.html
email to a friend
 print this definition
 cite this definition
 link to this page
Copy and paste this HTML in your website to link to this page
Related Research Articles from the InvestorGuide.com University
Income and Expenses
Information on necessary steps in any budgeting process. Topics include determining your income, determining your expenses (whether they are fixed committed expenses, variable committed expenses, or discretionary expenses), and comparing the two.
Introduction to Budgeting
Learn how to get your financial house in order. Here we describe the overall approach we recommend: choose a system, calculate your current income and expenses and compare the two, set specific goals and monitor your progress as you work toward them.
Goals and Progress
Continuing the discussion of our simple 7 step budgeting process, this article includes information on how to set goals, and consequently how to achieve them.
|
