GROSS PROFIT MARGIN

Gross profit margin is a profitability ratio that

calculates the percentage of sales that exceed the cost
of goods sold.

In other words, Gross profit margin is a financial

metric used to assess a company'sfinancial healthand
business model by revealing the proportion of money
left over fromrevenuesafter accounting for thecost of
goods sold(COGS).

Gross profitmargin, also known asgross margin, is

calculated by dividing gross profit by revenues.
Calculated as:

Where: COGS = Cost of Goods Sold