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Profitability
How can I improve my company’s gross profit margin?
Gross profit margin is a financial metric to assess a company’s financial health and profitability.
It is calculated by subtracting the cost of goods sold (COGS) from total revenue and dividing the result by total income. The resulting number is expressed as a percentage.
Gross profit margin is one of the three monthly profitability figures you should calculate and reassess.
I dive into the other two in this post below:
Why is gross profit margin necessary?
The gross profit margin is a vital indicator of a company’s financial health and profitability.
A high gross profit margin indicates that a company is efficient in its production process and can generate significant profits.
On the other hand, a low gross profit margin may suggest that a company needs help to control its costs…
