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Gross Margin

Analytical
New answer on Aug 10, 2021
2 Answers
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Anonymous A asked on Aug 09, 2021

what is gross margin? Is this different from profit margin and gross profit?

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Ian
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replied on Aug 10, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

I highly recommend you start to use google and investopedia for questions like these (not that we're not happy to help!).

Straight from Investopedia:

  • Gross profit describes a company's top line earnings; that is, its revenues less the direct costs of goods sold.
  • The gross profit margin then takes that figure and divides it by revenue to get a handle on how much gross profit is generated on a percentage basis after taking costs into account.
  • Both of these differ from net profit or net profit margin in that net deducts several other indirect costs and expenses not found in the gross profit.
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Francesco
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replied on Aug 10, 2021
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Hi there:

  • Gross profit = Net Sales – COGS
  • Gross profit margin = (Net Sales – COGS) / Net Sales)

Hope this helps,

Francesco

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Francesco

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