What is gross profit?

Gross profit is a key profitability figure for a small business. It's calculated by subtracting cost of goods sold from sales revenue. Here's how you can use gross profit, and the gross profit margin, to measure your business' production efficiency.

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Alicia Tuovila

by Alicia Tuovila

Alicia Tuovila is an accounting and finance writer based in Tennessee. She holds an active Certified Public Accountan...

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Updated on: February 5, 2024 · 3 min read


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This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.

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