profitability of a business
Gross profit is a fairly simple indicator showing the difference between the proceeds from the sale of goods and their cost. Gross profit ratio is the ratio of gross profit to total revenue, expressed as a percentage. Gross profit margin is a quick and useful way to compare the performance of a particular company and the performance of other companies in a specific industry. This coefficient can also be used to compare the current and past state of the company – in particular, it is useful for companies operating in markets where prices for goods vary significantly.
Gross margin calculation
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