Gross Profit Margin Definition

Below please find a definition of “Gross Profit Margin”

Financial Analysis Training & Glossary TermsGross Profit Margin: Often termed as gross margin, gross profit margin is calculated by dividing gross income by net sales. (Gross profit margin = Gross income / Net sales). Gross profit margin is a valuable indicator of the profitability of a company. The higher the gross profit margin, the better the chances a company has in investing money on other aspects of business operations.

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