Dear all,
going through the income statement part I was wondering why SGA are included in the gross profit and the gross profit margin, since they are part of the OpEx.
I believe what you call Gross Profit in the example should be Operating Profit. (?)
Hi there,
You're right.
It stands to show that sometimes the answers in case books are wrong, so take them all with a pinch of salt.
Best,
Cristian
Hello!
Yes, and I found that very confusing too.
At the end of the day, when you case for consulting, it´s clearer than this, since you normally just talk about “margin”, and it´s clear what comes into that metric.
Cheers,
Clara
Hi there,
Per investopedia, “Gross profit only includes the costs directly tied to the production facility, while non-production costs like company overhead for the corporate office is not included”
In sum, you are correct :)
Yes, you are correct.
Hi,
Could you update the content differentiating gross profit from operating profit?
Currently it is really confusing.
Best.
(editiert)
