Latest Free Templates

Thursday, August 4, 2011

How to Calculate Gross Profit Margin

Gross profit margin can be calculated by dividing gross profit of the business by total sales revenue generated. The ratio is expressed as percentage and is as follows:

Gross Profit Margin = (Gross profit / Sales) * 100%

Learn how to calculate Gross Profit Margin with the following example:

James Ltd has the following data for the year ended 31 December 2010:
Sales revenue $870,000


Post a Comment