Gross Profit Margin- Meaning, Formula, Calculation & Interpretations

This step by step tutorial explains the fundamental concepts you should know about Gross Profit Margin, including its formula, calculations and interpretations. The tutorial also covers how to calculate the Gross Profit Margin in Excel using the Colgate Case Study.
You can download the Colgate Gross Profit Margin template from this link - www.wallstreet...
What is Gross Profit Margin?
--------------------------------------------
Gross Profit Margin is a percentage of sales ratio that determines a company's profitability after deducting direct costs of goods sold from revenue.
Formula
--------------------------------------------
Gross Profit Margin Formula = Gross Profit / Revenue
Uses
--------------------------------------------
Calculating the gross profit margin is useful for investors because it allows them to easily compare the company to others in its industry.
Investors can determine whether the target company's gross profit is healthy or not by comparing the gross profit percentages of companies in the same industry.
For more details, you can refer to our article - www.wallstreet...
Connect with us!
TH-cam ► / @wallstreetmojo
LinkedIn ► / mycompany
Facebook ► / wallstreetmojo
Instagram ► www.instagram....
Twitter ► / wallstreetmojo

[@wallstreetmojo]

Download the Colgate Gross Profit Margin excel template used in this video from this link - www.wallstreetmojo.com/ratio-analysis-template/

[@paigehudson737]

Very good explanation, voice was clear which made easy to understand the topic.

[@wallstreetmojo]

Thanks for liking

[@rizwanansari1488]

Sir even a kid will know that P&G has lesser gross profit margin than Colgate
You could have explained more on this like in the interpretation as such what could be the possibile reasons one can have high or low gross profit margin,
Btw concept explanation is really very nice, i appreciate that

[@teresadcruz4573]

Excellent video with great explanation.

[@wallstreetmojo]

Glad you enjoyed it!

[@mayursethiya1719]

Make videos for Credit note WCDL,TL,CC,SBLC,BG...etc

[@wallstreetmojo]

Appreciate your feedback, more content coming soon!

[@sarikabasista2470]

Informative video. 👍👍👍

[@wallstreetmojo]

Thanks!