Gross Margin Performance Analysis
The Gross Margin Report is a key indicator of business profitability, providing insight into the three major profitability ratios.Formula
Gross Margin = Gross Profit/Total SalesHow do I calculate the gross margin report?
A company's gross margin report can be a useful tool for measuring and expressing profitability. To calculate the gross margin, divide the gross profit (total revenues minus cost of goods sold) by the total sales. This can be easily done using Sourcetable.
Gross Margin = Gross Profit/Total Sales
Knowing and understanding your company's gross margin report is an important step for any business. It can provide valuable insight into the health of the business and help identify areas for improvement.
What is Gross Margin?
Gross margin is a measure of a company's profitability that takes into account the cost of goods sold and revenue.
What does the Gross Margin Report show?
A Gross Margin Report shows the total cost of goods sold, total revenue, and the gross profit or loss for a company.
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Key Points
How do I calculate gross margin report?
Gross Margin = Gross Profit/Total Sales
Calculating Gross Margin
The gross margin is calculated by dividing a company's gross profit by its sales. This enables you to determine the amount of profit a company makes from each sale.
Expressing as a Percentage
The gross margin is expressed as a percentage, so you can easily compare it to other companies and industry averages. This allows you to quickly determine how profitable a company is relative to its competitors.
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