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Gross Margin
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4:05
Gross Margin Ratio | Formula | Analysis | Example
Gross margin ratio is a profitability calculation that compares the gross profit of a business to the net sales. This percentage measures how profitable a company sells its inventory.
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Gross Margin: Definition, Example, Formula, and How to Calculate
investopedia.com
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80% margin means that when you make a sale, 80% of what you get is gross profit. Margin is the percentage between your profits and what you’re selling something for. A solid margin dances above 80%. Here is how you do it: Subtract your cost from the selling price – there’s your profit. Take that profit, divide by the selling price, and boom – your margin. If you want some help calculating this, or you want my worksheet that I use in my business, DM me the word ‘margin’ and I’ll send it over. | V
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