Gross margin represents the percentage of total sales revenue that a company retains after incurring the direct costs associated with producing the goods and services it sells. It is a critical metric for assessing a company's financial health and operational efficiency.
Gross profit, also known as gross margin or gross profit margin, is the difference between a company’s sales revenue and its cost of goods sold (COGS), excluding operating expenses such as finance, administration, and distribution costs.
The margin of profit is a financial metric that reveals the relationship between gross profits and net sales. It is used to evaluate a company's profitability by expressing gross profit as a percentage of net sales.
