Gross Profit

Browse all terms in Glossary

Definition

The difference between sales and the cost of goods sold. In order to break even, gross profit must be substantial enough to cover fixed costs.

Formula

Gross Profit = Sales - Cost of Goods Sold

Related Terms

Cost of Goods Sold, Gross Profit (TTM), Gross Profit Margin, Operating Income, R&D%, Revenues, SGA%

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