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Business

1 answer:

zaharov [31]1 year ago

6 0

<h2>•→ <u>Gross Profit </u><u>Margin </u>•→</h2>

#→<u> </u><u>Gross margin</u> is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (e. g. production or acquisition costs, not including indirect fixed costs like office expenses, rent, or administrative costs), then divided by the same selling price. "Gross margin" is often used interchangeably with "gross profit", however the terms are different: "gross profit" is technically an absolute monetary amount and "gross margin" is technically a percentage or ratio.

<h2>•→ <u>Net Profit </u><u>Margin </u>•→</h2>

#→<u> </u><u>The net profit margin</u>, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form.

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