Sales minus what the goods themselves cost to make or buy
Gross profit is sales less the cost of the goods sold. It shows how much the product or service itself earns, and if it is thin, no amount of saving further down leaves a profit. Compared within a sector, it reveals pricing power and buying skill.
On sales of $100 million with $60 million of cost of sales, gross profit is $40 million.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.