The gross profit percentage, or gross margin, tells the percentage of money a company keeps from its revenue after direct costs are accounted for, and it indicates a company's gross profit margin. To determine the gross ... More »

To calculate the gross profit percentage, also known as the gross profit margin, the gross profit should be divided by the total revenue and then multiplied by 100. This is the percentage of money that the company makes ... More »

Gross profit is calculated by subtracting the cost of goods sold from sales. Businesses also use these two inputs to calculate gross profit margin, which expresses the relationship between gross sales and cost of goods s... More »

To calculate the gross profit percentage, also known as the gross profit margin, the gross profit should be divided by the total revenue and then multiplied by 100. This is the percentage of money that the company makes ... More »

Preparing a profit and loss statement for a business entails calculating the net profit by knowing information, such as revenue, net sales, cost of goods, gross margin and operating expense for a certain period of time, ... More »

A company has good gross margin when it is competitive with its industry peers and remains stable in the long-term, according to Investopedia. Profit margins vary greatly from industry-to-industry. For example, the airli... More »

To prepare a profit and loss sheet, start with the total income or revenue of the business or company and subtract the cost of goods or products. This gross profit value must then be subtracted by all the expenses of the... More »