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Gross margin, or gross profit margin, is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage.
In business, Gross Margin Return on Inventory Investment (GMROII, also GMROI) [1] is a ratio which expresses a seller's return on each unit of currency spent on inventory.It is one way to determine how profitable the seller's inventory is, and describes the relationship between the profit earned from total sales, and the amount invested in the inventory sold.
Gross profit margin is calculated as gross profit divided by net sales (percentage). Gross profit is calculated by deducting the cost of goods sold (COGS)—that is, all the direct costs—from the revenue. This margin compares revenue to variable cost. Service companies, such as law firms, can use the cost of revenue (the total cost to achieve ...
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This template is used on approximately 5,900 pages and changes may be widely noticed. Test changes in the template's /sandbox or /testcases subpages, or in your own user subpage . Consider discussing changes on the talk page before implementing them.
For households and individuals, gross income is the sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings, before any deductions or taxes. It is opposed to net income , defined as the gross income minus taxes and other deductions (e.g., mandatory pension contributions).
C = Unit Contribution (Margin) Subtracting variable costs from both costs and sales yields the simplified diagram and equation for profit and loss. In symbols:
The most important being gross margin and profit margin; also, companies use revenue to determine bad debt expense using the income statement method. Price / Sales is sometimes used as a substitute for a price to earnings ratio when earnings are negative and the P/E is meaningless. Though a company may have negative earnings, it almost always ...