gross profit(redirected from Gross Profits)
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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.
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.