Gross Profit Percentage

Posted in Finance, Accounting and Economics Terms, Total Reads: 774
Advertisements

Definition: Gross Profit Percentage

Gross profit percentage is the percentage of revenues that a company saves after considering the direct fixed and variable costs of production. The gross profit percentage can be calculated as follows,

Formula

Gross profit percentage= (Gross profit margin)/Revenues × 100%

Gross profit percentage= (Revenues-Cost of Goods Sold)/Revenues× 100%

Higher gross profit percentages indicate greater efficiency of companies to convert their raw materials and resources into sales of final products.




Looking for Similar Definitions & Concepts, Search Business Concepts


Similar Definitions from same Category: