Monthly Archives: February 2022

Gross Profit Margin: Formula and What It Tells You

Importantly, under expenses, your calculation would not include any selling, general, and administrative (SG&A) expenses. To arrive at the gross profit total, the $100,000 in revenues would subtract $75,000 in cost of goods sold to equal $25,000. There’s a few reasons why a company would want to analyze gross profit as opposed to net profit. […]