Technically gross profit is NOT gross margin. Gross profit = Revenue-COGS. However, Gross margin= Gross profit/Revenue. Gross profit is the actual dollar amount, whereas gross profit Margin is a percentage.
That is perhaps a textbook definition but in my 20 years across public, private, and PE (including working at portcos for the top PE firms)…. They are used interchangeably. If people want the percentage they will say what’s the gross profit % or gross margin %….
Thanks, great explanation
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Well explained video. Thanks! ❤
Thank you!
Exactly the type of explanations I've been looking for. Thanks!
Great! What other explanations are you looing for in the finance world?
Technically gross profit is NOT gross margin. Gross profit = Revenue-COGS. However, Gross margin= Gross profit/Revenue. Gross profit is the actual dollar amount, whereas gross profit Margin is a percentage.
That is perhaps a textbook definition but in my 20 years across public, private, and PE (including working at portcos for the top PE firms)…. They are used interchangeably. If people want the percentage they will say what’s the gross profit % or gross margin %….
Took forever
Quality content
Thank you!!
helpful. thanks.
great - are there other videos you would like to see?