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The Gross Margin, also known as the Gross Profit Margin, is an expression of the Gross Profit as a percentage of the Revenue. It is calculated using the following: Gross Profit Margin = Gross Profit/Revenue*100 Looking at the input variables of the equation, it is clear that the factors that would affect the Gross Profit Margin would be the Gross Profit and the Revenue. What affects Gross Profit and Revenue would be an endless topic of it's own.
You calculate loss the same as you would do profit income minus expenses (outgoings) = profit/loss If the answer is negative then you are making a loss, if the answer is positive then you are making a profit.
The limitations for the profit margin ratio is in comparing different industries. Profit margins between say a supermarket and an aircraft manufacturer would vary considerably.
Increase profit margin.
The selling price is the cost plus the margin. If you know the margin as a fixed value and the cost was in cell A2 and the margin in B2, in C2 you could put the following formulas: =A2+B2 If the margin is a percentage of the cost and the margin is in B2, then the formula would be: =A2+A2*B2
Gross margin is same as gross profit ratio. That is, it is the ratio of gross profit to sales.Gross margin or gross profit margin is the difference between the sales and the production costs of the company after excluding overhead, payroll, taxation, and interest payments. It expresses the relationship between gross profit and sales revenue. It is a measure of how well each rupee of a company's revenue is utilized to cover the costs of goods sold.Higher gross margins for a manufacturer reflect greater efficiency in turning raw materials into income.Most company's work towards attaining a particular gross profit margin or bettering it. So in many cases, the selling price of the finished goods is determined based on the margin that the company wishes to attain by selling these goods.Example: Let us say Mr.X manufactures leather belts and sells them to retail show-rooms. The cost that Mr.X incurs during the production of a single premium quality belt is Rs. 400/- He wishes to maintain a profit margin of 25% on his products. So the price he would sell his belts to his retailers is Rs. 500/-Formula:1. Gross Profit / Net Sales or2. (Net Sales - COGS) / Net Sales
I have the published financial statements of commercia banks, I would like to identify the elements used to calculate the 'net interest margin' Thanks
Nike would have a much higher profit margin and the kids involved would have fewer fingers
If there is no cost of goods sold, then your gross margin is 100%. In other words, all the revenue you receive translates into gross profit. The type of business that would report this kind of result is most likely to perform services and dividing the Profit and Loss Statement into a gross profit and net profit section is irrelevant.
You would have a very tough time, because that isn't the formula to calculate work. (distance) divided by (time) is the formula to calculate speed. The formula to calculate work is: (force) multiplied by (distance).
Most coffee shops work around a profit margin of 55% - 70%.