3. Gross Profit Margin - Deepstash
3. Gross Profit Margin

3. Gross Profit Margin

Represents the percentage of revenue left after subtracting the cost of goods sold (COGS). This metric focuses on the core profitability of a company’s products or services before accounting for other operational expenses, helping assess pricing strategies and production efficiency.

Example: A company’s revenue is $300,000, and the cost of goods sold (COGS) is $180,000. The gross profit margin is ((($300,000 - $180,000) / $300,000) × 100) = 40%.

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