Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Gross margin measures the percentage of revenue after direct costs are subtracted. Calculating gross margin involves subtracting COGS from revenue and dividing by total revenue. High gross margin ...

A company determines its gross profit by taking its sales revenue, and then subtracting the cost it paid to obtain the goods it sold. For example, if it cost a bookstore $7 to obtain a book from a ...