Gross profit is expressed as a currency value. Gross profit margin is a percentage. The formula is: Gross Profit Margin = (Revenue – Cost of Goods Sold) / Revenue x 100 Gross profit differs from ...

It shows how efficiently a business turns revenue into profit before accounting for overhead and other expenses. What Is Gross Margin? Gross margin is the percentage of a company's revenue that's ...

The equation for working out gross profit: Revenue – Cost of sales = Gross profit Expenses (overheads) – these are the costs that do not change as production increases or decreases.

In addition to net profit, two common metrics used to assess a company's core strengths and weaknesses are gross profit and earnings before interest, taxes, depreciation, and amortization (EBITDA).