Gross Profit Percentage Formula Calculation Examples
What is the Gross Profit Percentage? Gross profit percentage is a measure of profitability that calculates how much of every dollar of revenue remains after paying off the Cost of Goods Sold (COGS). In other words, it measures the efficiency of a company utilizing its input costs of production, such as raw materials and labor, to produce and sell its products profitably. It can be seen as the percentage of sales that exceeds the direct costs associated with manufacturing the product....