Profit Margin Calculation Guide
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Profit margin calculation guide

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Gross Profit vs. Gross Margin 📚 Grab my FREE accounting infographic ebook (link in bio) To differentiate between gross profit and gross margin, you need two numbers: Revenue: Income from sales after discounts & rebates. Cost of Goods Sold (COGS): The cost to produce the product/service. 🔹 Gross Profit is the dollar amount of profit after covering the cost of goods sold. Formula: Gross Profit = Revenue - COGS 🔹 Gross Margin is the percentage of revenue that becomes gross profit. Formula: (G...
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Revenue ≠ Profit Give me 60 seconds, and I'll explain the difference! → What is Revenue? The total income a business earns from selling its products or services to customers. It's the income generated before deducting any expenses. → Sources of Revenue: Sales: Money earned from selling products or services to customers. Services: Income from providing specific services to customers. → Found: The top line of the Income Statement. → What is Profit? Profit is what remains after deducting al...
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11 Ways To Measure Profit 👉 FOLLOW @brianferoldi for more content like this. Want a FREE copy of my accounting infographic ebook? Link in bio. Not all profit is created equally.... Here are 10 different ways to measure how much profit a company is generating: 1: Gross Profit: Explanation: Profit after subtracting the cost to produce the product / service Financial Statement: Income Statement Formula: Revenue - COGS 2: Operating Profit: Explanation: Profits generated from running the bus...
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Margins explained simply in 45 seconds: Follow @brianferoldi for more content like this 📚 Grab my FREE accounting infographic ebook (link in bio) Margin refers to the percentage difference between the costs and revenue of products or services. It indicates how much profit a company makes on its sales after covering various costs. Higher margins indicate more efficient operations and stronger financial health. Here are the 6 most important margins to know: 𝗚𝗥𝗢𝗦𝗦 𝗠𝗔𝗥𝗚𝗜𝗡 The percentage ...
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