Term of the Day: Gross Profit

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	INVESTOPEDIA Term Of The Day October 4, 2015 Gross Profit A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement or can be calculated with this formula: Gross profit = revenue - cost of goods sold Also called "gross margin," "sales profit" and "gross income". Breaking It Down: Gross profit assesses a company's efficiency at using labor and supplies. The metric only considers variable costs, that is... Read More Related to "Gross Profit" Understanding The Income Statement The income statement is one of the three financial statements - the other two are the balance sheet and... Read More Revenue Projections Show Profit Potential The value of all common equities is closely tied to the earnings power of their issuers. To assess the value of a stock... Read More Evaluating The Board Of Directors You can learn a lot from looking at the disclosures made about a company's board of directors in its annual report... Read More Recently Added Definitions Monetary Policy The actions of a central bank, currency board or other regulatory committee that determine the size and rate of... Read More Purchasing Power Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one... Read More Related Definitions Revenue Income Gross Profit Margin Gross Earnings Residual Income Past Terms of the Day Revenue Normal Profit Operating Cost Cost Of Funds Cost Accounting You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: