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Gross profit formula  (ID: 292) [Edit]

Tags:  corporate finance financial analysis financial statements metric

Description of the Gross profit formula

Formula for the calculation of a company's gross profit.

Formula

\[ \text{Gross profit}=\text{Revenues}-\text{Direct operating cost} \ \]

Additional information related to this formula

Related financial formulas

Net profit margin (NPM)   •   Operating profit margin (OPM)