gross profit


Also found in: Dictionary, Thesaurus, Legal, Acronyms, Encyclopedia, Wikipedia.
Related to gross profit: revenue, net profit, Operating income, Operating Profit, Cost of goods sold

Gross profit

Gross Profit

A company's revenue from sales in a given period of time less its cost of goods sold. Gross profit is easy to calculate and may provide a rough idea of a company's performance. However, it does not account for a number of very important expenses, such as marketing or employee salaries. For that reason, it is not as accurate of a measurement as net profit or EBIT.

gross profit

Total revenue of a business minus the cost of goods it sold. Gross profit does not include income from incidental sources and also excludes selling and administrative expenses. Compare net income.

gross profit

the difference between SALES REVENUE and the COST OF SALES before the deduction of selling, distribution, administration and other costs in the PROFIT-AND-LOSS ACCOUNT.

gross profit

the difference between SALES REVENUE and the COST OF GOODS SOLD. Gross profit less the operating expenses of the business equals NET PROFIT.
References in periodicals archive ?
In the fourth quarter of fiscal 2006, the company's gross profits exceeded its cost of operations; and, for that quarter, operations were funded entirely through the sale of its products.
In a recent 90-day period, Scott Honda generated $170,147 incremental gross profit in service, plus additional sales revenue.
Gross profit grew across all regions and products, albeit only moderately in Air Freight.
Non-GAAP gross profit for the second quarter of 2013 was 49% compared to a non-GAAP gross profit of 49% for the second quarter of 2012 and non-GAAP gross profit of 54% for the first quarter of 2013.
Gross profit from non-aggregates segments was in line with the prior year's third quarter as overall segment revenues approximated the prior year.
Ability aims to achieve 10% in gross profit margin and Altek is expected to see gross profit margin stay at 15% this year.
Gross profit is the result of a company's revenue less the costs of manufacturing the product (i.
But to explain why the gross profit margin is so important, let's use some more analogies.
Recruitment consultancy Michael Page International has reported record gross profit for the second quarter.
The 43rd Levy Scheme (Apr 1, 2004 - Mar 31, 2005) is calculated by reference to the gross profit on British horserace betting business.
com, was forced to close its doors, Salomon Smith Barney analyst Tim Albright told the press: "They got a lot of usage, but they were generating a negative gross profit on every item they sold.