gross profit


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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 its aggregates segment, growth in gross profit accelerated again in the third quarter despite severe weather in key markets and a 28 percent increase in diesel cost per gallon.
In addition to opportunities to manage gross profit margin afforded by the integral method of reporting, there also are incentives because of the pressure to meet or beat analysts' forecasts of quarterly earnings.
* Gross profit margins are split in order to distinguish between gross profit margin before unutilized capacity costs (which is the normal gross profit margin that the company would expect to achieve while operating at optimum capacity) and total gross profit margin.
As with Liters, 750ml Gross Profit Margin (GPM) indicates the amount of profit achieved per sale expressed by percentage.
Depressed fuel prices were accompanied by generous fuel margins, resulting in a 24.6-percent increase in fuel gross profits on a 2.2-percent volume gain at single stores.
Gross profit per vine was calculated according to equation 1 (below).
Premium Lifestyle sales, meanwhile, decreased 8.8% to PS52.1m, with gross profit dropping 11.6% to PS20.5m.
Gross profit also grew by 28.7% to SAR139.91mn, while the operating income reached SAR87.68mn, an increase of 26.47%.
I like to explain gross profit as the difference between your sales and your cost of sales.
A manager of Cheng Uei stated that the firmi's remarkable growth in gross profit margin was mainly due to expanding manufacturing scale and relatively high gross profit margin of new products.
The above organization is useful because it isolates and reports the gross profit of your business--a critical number.
The company said the increase in gross profit in Q4 FY 2018 resulted primarily from an increase in home care revenue.