This, in turn, can create customer dissatisfaction issues that hinder any future follow-on product sales. Gross Profit ngha l li nhun gp, chnh l phn li nhun thu c sau khi tr cc chi ph lin quan n vic sn xut v kinh doanh, cung cp dch v ca mnh. To calculate profit margin, simply divide net income by net sales. Great post, and I love the concept of documenting the price. While "gross receipts" and "gross profit" may sound similar, they are two very different accounting terms used to record and analyze revenue made by a business. Direct labor, assuming it is hourly or otherwise dependent on output levels. Tuyn dng nhn s, Tnh nng t hng dnh cho nhn vin Sales, DMS Advanced Gii php dnh cho doanh nghip ln, Gii php DMS cho ngnh Vt t nng nghip Nng dc, Gii php DMS cho ngnh thit b gia dng, Gii php DMS cho ngnh Vt liu xy dng. This is the top portion of Samanthas income statement: Sales Revenue $20,000 COGS $15,000 = Gross Profit $5,000. Mike, thanks for the thought provoking post. 2. V sao cc doanh nghip cn s dng Salesforce? Li nhun gp gip nh gi hiu qu ca mt doanh nghip trong vic s dng lao ng cng nh vt t ca h trong vic sn xut hng ha, dch v. o lng Brand Health nh th no? Gross Sales l tng s lng giao dch bn hng c thc hin bi doanh nghip trong mt khong thi gian nht nh. For a better experience, please enable JavaScript in your browser before proceeding. This includes expenses that depend on the company's sales such as materials, labor costs, equipment, sales commissions, and depreciation that results from production -- all variable costs. Gross sales vs. revenue. Chng ti mong mun cung cp cho bn c nhng thng tin cp nht nht, nhng kin thc b ch nht gip bn c tm ra gii php, chin lc truyn thng ph hp v hiu qu cho doanh nghip ca mnh. Changing his commission structure might give him the impression you feel he is overpaid. nh ngha Gross Profit (Ngun: Internet). For instance, clients can ask for a price reduction if their order was incorrect, there was an issue with their product during transit or they discovered a defective item. Do I pay commissions on gross sales or gross profit for services? Da trn con s ca Gross Profit, doanh nghip c th xy dng c cc chin lc kinh doanh. Quickbooks Resource Center. Successful investing in just a few steps. All components are in place to maximize ROI. Gross sales represent the total amount of sales revenue generated by a company before any deductions, such as sales returns, discounts, or allowances. Trong , Gross sales l tng doanh thu, doanh s bn hng khng cng thm cc chi ph lin quan n vic sn xut, to ra sn phm v doanh s bn hng . The compensation issue has certainly touched a hot button. Unless you decide, dealerships tend to run into this problem. The gross sales amount is not reported in the profit and loss account. Cng thc no c th xc nh Gross Profit? Consolidating vendors and services, measuring and retaining high ROI lead sources and eliminating non-performers, and much more has helped many dealerships to remain highly profitable. In very simple terms, revenue represents money that comes in the company's door, while retained earnings represent the money that doesn't go back out. You use much of the same information from your income statement to calculate gross margin. Tip theo, tm hiu gi tr hng bn b tr li v thm n vo doanh thu thun . Gross Profit v Net Profit l g. Great topic. Khi thy chi ph sn xut gn bng hoc cao hn doanh thu, doanh nghip c th gim vn hoc tm bin php khc phc tt nht. Absorption costing is a managerial accounting method for capturing all costs associated with the manufacture of a particular product. Gross profit is also generally more controllable than other aspects of a company. This discussion defines gross profit, calculates gross profit using an example, and explains components of the formula. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Whether you are starting your first company or you are a dedicated entrepreneur diving into a new venture, Bizfluent is here to equip you with the tactics, tools and information to establish and run your ventures. A company's sales revenue (also referred to as "net sales") is the income that it receives from . The difference between gross sales and net sales. Chnh sch bo mt thng tin That means for every sofa sold, $700 of gross profit is realized. Understanding both numbers is crucial to your financial statements. Nhng ch s ny khng tnh n tt c cc chi ph pht sinh trong ton b qu trnh to ra sn phm bn ra. They need to feel they are in their own business with true income and expense responsibility. There is always a way to structure a good deal. Gross Profit vs. Net Income: What's the Difference? Heres everything you should know about the terms, why they are useful, and a closer look at gross receipts vs. revenue and other common financial analysis. Our star salesman is the best closer I've ever seen. This means you can't deduct your chassis cost from your sales figure. Vy Gross Profit l g? Revenue is typically created via sales of products and services. Salespeople should also be given a draw vs. a salary. Gross receipts, however, refers only to the actual cash a company has received. To obtain the gross profit margin, we divide the gross profit by total revenues for a margin of $25,216 / $151,800 = 16.61%. CNG TY C PHN CNG NGH MOBIWORK VIT NAM "Form 10-K, Apple Inc.," Page 26. Julian B., Sales Director (company name withheld). We doubled the commission on a revenue basis for product-services sales. hbspt.cta._relativeUrls=true;hbspt.cta.load(53, 'b7b731c7-094d-41ea-9ed0-d549c14bdb37', {"useNewLoader":"true","region":"na1"}); Get expert sales tips straight to your inbox, and become a better seller. We then subtract the cost of goods sold from revenues to obtain a gross profit of $151,800 - $126,584 = $25,216 million. Nice comment. Trusted by business builders worldwide, the HubSpot Blogs are your number-one source for education and inspiration. These statements conveniently display gross profits as a separate line item, but they are only available for public companies. Samanthas Sewing Shop produces surgical gowns worn by health care workers. Each term is distinct in its application and measurement, but despite those differences, the two concepts are often conflated. For example, if a company charges $300 for a TV and sells 1000 TVs, its sales revenue is $300,000. Lm th no nhn vin sales khng li lm bo co hng ngy, hng tun? We're baaackk! This will also give you the chance to show how his earnings increase when his gross sales are up. It is the percentage by which sales revenue exceeds the cost of making those sales. Material and shipping costs work out to each sofa costing the company $1,000 to buy. How can you make them productive? Stock Advisor list price is $199 per year. Investopedia does not include all offers available in the marketplace. Tuy nhin, iu ny thng kh hiu hn, v vy doanh thu thun thng l gi tr duy nht c hin th. Cn doanh thu thun li nm trong gi vn hng bn. Try another search, and we'll give it our best shot. Gross sales are equal to the sum of all sales, while net sales subtract all discounts, allowances, and returns to calculate your company's profit. Adjust compensation for unmet profit margins. Gross margin is a company's gross profit divided by its sales and represents the amount earned in profit per dollar of sales. Itcanalsobecallednetsales, becauseitcanincludediscountsanddeduc-, istypicallycalledthetoplinebecauseitsits, ontopoftheincomestatement. Is your gross profit increasing or declining over time? "Net sales" is the total monetary value of everything a company has sold in a given period--the amount of money brought into the company through sales. He sells products and services. Email ca bn s khng c hin th cng khai. Trong kinh doanh, vic tnh ton chi tit cc ch s v doanh thu, chi ph, li nhun rt cn thit. After a lull in customer activity, the family-owned company decided to run a holiday blowout sale and sold 100 . Here's How B2Bs Can Justify Raising Prices, How to Win a Price War (And Prevent Future Ones), 13 Psychological Pricing Hacks to Increase Sales [Infographic], Five Tips for Marketing a Subscription-Based Business, 22 Tips to Help Make Free Shipping Profitable [Infographic], How to Price a Marketing Proposal: Four Proven Approaches. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Cumulative Growth of a $10,000 Investment in Stock Advisor, This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors. 4. This compensation may impact how and where listings appear. Free and premium plans, Customer service software. The amount that remains is gross profit. Li nhun gp s c xut hin trn bo co doanh thu ca doanh nghip v c tnh bng cng thc: tr i gi vn hng bn t doanh thu. Gross profit is calculated by subtracting the cost of goods sold from net revenue. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. T , n gip cc nh u t a ra quyt nh c hp tc lu di vi doanh nghip hay khng. Bc 2: Tip theo, tm hiu gi tr hng bn b tr li v thm n vo doanh thu thun . This would be a sure motivation and commitment killer. In addition to being distinct from net sales, gross profit is also not the same thing as "net profit," which is a measurement of the amount of money taken in by a company after all its expenses--not just the costs of goods, but the costs of advertising, distribution, infrastructure and employee salaries--have been deducted from its revenue. Total revenue is income from all sales while considering customer returns and discounts. Adjust compensation for unmet profit margins. Net sales are a company's gross sales minus three kinds of deductions: allowances, discounts, and returns. Guess how quickly the focus of the sales force turned to product-services? Calculation. On the other hand, gross profit is the income that a company makes from its sales after the cost of the goods and operating expenses have been subtracted. c hiu nh sau: Gross Sales l mt ch s v tng doanh s bn hng ca doanh nghip v khng bao gm cc chi ph lin quan n vic to ra doanh s bn hng ny (V d nh chi ph nhp hng, chi ph tip th,). Know your margins, and make products and services as equally profitable for your sales staff as possible. S khc bit gia Gross Sales v Net Sales (Tng doanh thu v Doanh thu thun). You didn't say this, but I imagine that your products add up quicker for gross sales than your services do. Nhng ch s ny phi c quan st trong mt khong thi gian thch hp xc nh chnh xc tm quan trng v ngha ca chng. "Gross receipts" refers to the cash that a business receives during a certain time period. hbspt.cta._relativeUrls=true;hbspt.cta.load(53, 'a367b8bb-93e6-4e75-be22-748a71f6f30b', {"useNewLoader":"true","region":"na1"}); Revenue is the total income a business generates through its sales. Net Income vs. Net Profit: Whats the Difference? Returns as of 07/17/2023. M s thu: 0107042644, Gii thiu v MobiWork Free and premium plans, Content management software. U.S. Securities & Exchange Commission. In contrast, gross revenue is the money generated by all business operations, including sales and investments. The Motley Fool has a disclosure policy. January 12, 2022. When gross profit is expressed as a percentage of net sales, it's called the "gross profit margin." Continuing our example, the gross profit margin of the t-shirt company would be 80 percent, since $8 million is 80 percent of $10 million. Version 1: Using this example, you can offer a commission on the gross sales ($100 per hour) and provide your salespersonlet's say a 10 percent commissionso it works out to be $10 per hour in commissions. Net Sales phn nh tt c cc khon gim gi m khch hng tr, chit khu sn phm v tt c cc khon hon tr cho khch hng sau khi bn hng. Thay vo , n thng c s dng trong cc bo co ti chnh ni b. Divide your gross profit on a sale by its cost, and then multiply the figure you're left with by 100 to get your profit margin. It accounts for all the sales a company makes but considers three key factors that impact the price a product or service might be sold for: Once those elements have been folded into a company's financial reporting, that business has a clearer picture of its actual revenue. Topic c vai tr v tc dng nh th no? Hank Stroll ([email protected]) is publisher at InternetVIZ, a custom publisher of 24 B2B e-newsletters reaching 490,000 business executives. Gross profit is stated as a number, while gross margin is stated as a percentage. What Is Gross Profit and Why Is It an Important Measure? Here, we'll take a closer look at the difference between revenue and profit and see how to find one from the other. This is where the rubber meets the road. So, if you've made a gross profit of $3 on a sale that cost your $5, divide three by five and multiply the result, 0.6, by 100. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. The compensation of the sales team must be based on volume and your profit marginour readers all say that loud and clear. You can run a trend analysisone type of financial analysisto determine how your gross profit and gross margin compare with your businesss numbers for previous years. Free and premium plans. This must include associated direct costs (aka COGS or Cost of Goods Sold, such manufacturing costs) or the cost of purchasing inventory, but not operating costs. Hu ht cc doanh nghip s khng cung cp Gross Sales trong cc bo co ti chnh c np cng khai. Topic l g? I'd like to touch on desking best practices. However, it should be noted that a portion of the fixed cost is assigned to each unit of production under absorption costing, which is required for external reporting under the generally accepted accounting principles (GAAP). It sounds productive, but it isn't. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. Cng cc khon chit khu ny vo s liu bn hng rng. That would make the company's EBIT $855,000. That makes gross profit a better way to analyze profit margins, how efficient the sales process is and how a company can maximize how much money they make on sales. Consider a law office with no cost of goods sold. 6 templates to manage your business, personal, and program spend on an annual, quarterly, and monthly basis. Gross profit may also be referred to as sales profit or gross income. Learn More. Gross Profit l mt thut ng m nhng bn c nghe hoc nghin cu v lnh vc ti chnh ngn hng tng gp. The metric mostly looks at variable coststhat is, costs that fluctuate with the level of output, such as: As generally defined, gross profit does not include fixed costs (that is, costs that must be paid regardless of the level of output). Tng doanh thu c tnh bng tng doanh thu trc khi gim gi hoc tr hng. Gross profit, which is used to calculate gross profit margin, is a measure that analyzes a company's cost of sales efficiency. This calculation of gross profit helps determine whether products are being priced appropriately, whether raw materials are being inefficiently used, or whether labor costs are too high. Switching to a commission structure based on service sales simply causes your sales staff to give away products. To calculate gross profit, you need to look at the income statement, also called the profit and loss (P&L) statement, for your business. Gross sales formula (Cng thc tng doanh thu) Cng thc tng doanh thu: Tng doanh thu = Tng ca tt c cc bin lai bn hng. By calculating a company's gross profit, you can use the information to calculate the gross profit margin, which is equal to the gross profit divided by the revenue. Has the price of raw materials gone up? Let me take an example. Net income is the profit earned by a business after all expenses have been considered, while gross profit only considers product-specific costs of the goods that have been sold. If your service costs are somewhat vague, put more energy into quantifying them. Now, let's imagine that of those 5,000 orders, 100 buyers reported defects and each received an allowance of $0.15 per unit. A company's gross sales is the most fundamental measure of the income it generates without accounting for allowances, discounts, and returns. The second line item may represent sales returns, if you sell a returnable product. It is the dollar amount of sales revenue you have left after paying all the direct costs of producing your product. Because their commission depends on the final cost of the sale, salespeople are less likely to discount products. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Tng doanh thu ch xem xt tng s tin bn hng c thc hin trong mt thi k c th. In addition, you also should look at any changes in the cost of manufacturing overhead. Gross profit is the income that is left after production costs have been subtracted from revenue, and helps investors determine how much profit a company earns from the production and sale of its products. Lm th no nng cao hiu qu kinh doanh trong doanh nghip? A high gross margin across several years of data means that your business is generating profitability from the efficient use of raw materials, labor, and manufacturing overhead. Do , khon khu tr c to nn b p vo ti khon bn hng. Gross profit is the difference between net revenue and the cost of goods sold. Gross profit can also be a misnomer, especially when consider the profitability of service sector companies. Revenue: The total amount of money that a business earns. I know the president thinks these meetings are worthwhile. S liu tnh ton li nhun gp ch c th xem xt chi ph bin i, tc l chi ph dao ng theo nh mc sn lng, v d nh: Gi vn sn phm, dch v, hng ha bn trong k. Includesboth, directlaborcosts,andanycostsofmaterials, usedinproducingormanufacturingacompanys, Gross Profit Margin: Formula and What It Tells You, Gross Margin: Definition, Example, Formula, and How to Calculate, Cost of Goods Sold (COGS) Explained With Methods to Calculate It, Earnings Before Interest and Taxes (EBIT): Formula and Example, Fixed Cost: What It Is and How Its Used in Business, Absorption Costing Explained, With Pros and Cons and Example, gross profit will consider variable costs, Selling, administrative, and other expenses, Financial Services interest, operating, and other expenses. This means that 75% of Samanthas $20,000 in sales revenue went to pay the direct costs of producing the product, as reflected by the COGS. The tech and business worlds yield constant surprises: Writer Tyler Lacoma covers the most important changes, and what to expect from the future. Business Gross Profit vs. Nhng k nng no Leadership cn c? Once you've established your net sales, you can calculate your gross profit by subtracting the cost of goods sold (COGS) the costs directly associated with the production of your product, including raw materials and labor from your net sales figure. Alternatively, gross profit is often the third line to the top on an income statement (underneath net revenue and cost of goods sold). No costs are deducted, not even for canceled projects or returned items. Hy ng k nhn bn tin nh k ngay nh. A fixed cost is a cost that does not vary with the level of production or sales. Gross Margin vs. The key difference between gross and net sales is that gross sales refer to the total value of sales made by the company during the period without adjusting for any of the costs related to such sales. Introduction to Conducting a Cost-Volume-Profit Analysis, Categories of Profitability Ratios to Help Your Business, How To Calculate Cost of Goods Sold (COGS), How To Determine Operating Profit Margin Ratios. Doanh thu thun (Net sales) phn nh ng thc trng thu nhp ca doanh nghip hn l Gross Sales. I approached a Sales Manager today and asked him, When developing a philosophy on how you negotiate your deals, can you have both gross profit and gross sales? And his answer was yes. Like the similar phrases "gross profit margin" and "net profit," both of which can easily become confused with either of the other two, they're different ways of measuring the influx of money into a company. But I don't. Cng thc tng doanh thu: Tng doanh thu = Tng ca tt c cc bin lai bn hng. The first line item on your income statement should be sales revenue. Trong trng hp nh vy, tng doanh thu c th c tnh bng cch thm mt s mt hng nht nh. Any tips would be appreciated. A regional sales manager suggests tightening up pricing instead of changing your compensation plan: You may not need to change your compensation plan at all. Matthew Frankel has no position in any stocks mentioned. Tho thun s dng Thay vo , doanh thu thun tnh n nhng thay i trong doanh thu do chit khu, ph cp v li nhun. Gross Sales ch c ngha i vi cc cng ty hot ng trong ngnh bn l tiu dng. Khon chnh lch d phng gim gi hng tn kho phi lp nm nay ln hn so vi nm trc. MarketingProfs is the largest marketing community in the world, and we are here to help you be a better marketer. HubSpot Podcast Network is the destination for business professionals who seek the best education on how to grow a business. The meetings never start on time, people stroll in late, answer their cells phones, and there's much socializing. Mong rng n c th gip bn hiu r hn v Gross Profit v cch vn dng chng trong qu trnh qun tr cc hot ng sn xut, kinh doanh ca doanh nghip. Your input will help us help the world invest, better! The difference between gross profit and gross margin is that gross profit compares profit with sales. Published: The higher, the better is the rule for gross margin. Each week, hosts Sam Parr and Shaan Puri explore new business ideas based on trends and opportunities in the market, Redefining what success means and how you can find more joy, ease, and peace in the pursuit of your goals, A daily dose of irreverent, offbeat, and informative takes on business and tech news, Each week, Another Bite breaks down the latest and greatest pitches from Shark Tank, Build your business for far and fast success, HubSpot CMO Kipp Bodnar and Zapier CMO Kieran Flanagan share what's happening now in marketing and what's ahead. Khi tng doanh thu c hin th trn bo co, con s ny thng gy hiu nhm v n c xu hng phng i doanh s thc t v hn ch ngi c xc nh tng s tin ca cc khon khu tr bn hng khc nhau. "What Is Gross Profit and Why Is It an Important Measure? Unless you have something against which to benchmark, or compare, all you have are raw numbers. >> c thm: Salesforce l g? Gross profit, also known as gross income, equals a companys revenues minus its cost of goods sold (COGS). The reported budget for the movie is around $300 million and, typically, a movie would need to make 2.5 times . Once its earnings before interest and taxes have been established, the company would find its net profit by (you guessed it) subtracting the interest and taxes it pays. MobiWork DMS s cung cp khi nim c bn v Gross sales n cc nh qun tr. It is most informative to look at gross profit as part of trend analysis. In addition to accounting for the cost of goods, operating profit subtracts the company's operating expenses and expenses associated with developing new products. The company creates a journal entry debiting Accounts Receivable for $12,000 and credited Sales Revenue $12,000. Tuy nhin, ch s ny khng phi l con s cui cng trong doanh thu ca mt doanh nghip. Let's take a look at how you can get from one to the other. Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Difference Between Revenue & Operating Profit, The Effects of Transactions on Cash Vs. Net Income. Importantly, under expenses, your calculation would not include any selling, general, and administrative (SG&A) expenses. Let's say those fees amount to 35% of the company's income. Earnings before interest and taxes (EBIT) indicate a company's profitability and are calculated as revenue minus expenses, excluding taxes and interest expenses. In contrast, the gross profit takes into account and reflects the cost . = $22,500 (net sales) Related: Profitability vs. Profit: Differences and Similarities. Subscribe for little revelations across business and tech, Learn marketing strategies and skills straight from the HubSpot experts, When it comes to brainstorming business ideas, Sam and Shaan are legends of the game, Watch two cerebral CMOs tackle strategy, tactics, and trends, Everything you need to know about building your business on HubSpot. Tm hiu gi tr ca hng ha tr li v bt gi. Gi vn hng bn bao gm nhng chi ph sau: Cng thc xc nh Gross Profit (Ngun: Internet). Gross profit may indicate a company is performing exceptionally well, but be mindful of the "below the line" costs when analyzing gross profit. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales). Gross profit shouldn't be confused withoperating profit. Thay vo , n thng c s dng trong cc bo co ti chnh ni b. Gross profit is an especially important financial metric because it helps a small business owner determine what is affecting the profitability of their business. Khi hiu r thm v khi nim Gross Profit l g, di y l nhng c trng c bn nht ca li nhun gp: + Hoa hng cho b phn v nhn vin bn hng. This will include operating costs, debt . Standardized income statements prepared by financial data services may give slightly different gross profits. Although they are closely related, there are differences in what they measure. Cost of goods sold (COGS) is defined as the direct costs attributable to the production of the goods sold in a company. The Motley Fool owns and recommends Apple. I would take it one step further. Lu tn ca ti, email, v trang web trong trnh duyt ny cho ln bnh lun k tip ca ti. Alternatively, if you're already using revenue intelligence software, you could skip the past steps and move directly to gross profit. Gross Profit by Hank Stroll "We make it on volume" is not the way to go: Growth in sales is important, but profit needs to result. In this example, the law office's gross profit is equal to its revenue. Version 2: An alternative is to pay your salesperson on the net profit of the consultant ($40/hr) at a rate of 25 percent, which works out to be also $10 per hour. Gross profit is a great tool to manage both sales and the cost of goods sold. If you concentrate on Gross Profit, you're not going to take a lot of skinny deals which will keep your gross profit per deal high and sales volume lower. Accounting Coach: What is the difference between revenues and receipts? Bi vit cmang li thng tin b ch cho bn khng ? So, if you sold 200 units in Q1 and the unit price is $40, your gross sales revenue (also called gross profit) is $8,000 for that quarter. To determine a good gross margin, look at industry average ratios and compare your operations to them. Reduce commissions or install a penalty if the service sales margin is not sold at an acceptable level. Tuy nhin, tng doanh thu s khng bao gm cc chi ph nh: Chi ph thu, ph bn hng, ph hot ng, v cc chi ph khc. It may not display this or other websites correctly. In equation form, the calculation for gross margin is: Gross Margin (%) = Gross Profit / Sales x 100. It seems the same approach is taken for developing an internet department. Profit, on the other hand, is the remaining portion of total revenue that remains after subtracting all of the company's expenses. If you go into it with a pre-determined mindset that the Internet customer is different, you have already lost. If you sold a $100 new product, for example, you received a 5 percent commission or $5. While gross profit is useful in identifying an issue, the company must now investigate all revenue streams and each component of cost of goods sold to truly understand why its performance is lacking. Gross profit and gross margin are two measures of the profitability of a business. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Net sales is a much more practical reflection of a company's overall revenue. By doing so, you're essentially deducting your cost of goods sold and therefore providing the insurer with gross profit, not gross revenue. A VP suggests a reduced commission: Keep in mind the old saying, "Compensation drives performance." Ch s ny phn nh tng doanh thu m mt doanh nghip thu c trong mt thi gian nht nh. JavaScript is disabled. Cng thc tnh tng doanh s bn hng c tnh bng cch cng tt c cc ha n bn hng trc chit khu, gim gi v tr hng. Continuing our example, the gross profit margin of the t-shirt company would be 80 percent, since $8 million is 80 percent of $10 million. The difference between them is that gross profit compares profit to sales in terms of a dollar amount, while gross margin, stated as a percentage, compares cost with sales. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Tr s chnh: Tng 6 , Ta nh Technosoft,Ph Duy Tn, phng Dch Vng Hu, Qun Cu Giy, H Ni ,Vit Nami Gross profit margin is your profit divided by revenue (the raw amount of money made).Net profit margin is profit minus the price of all other expenses (rent, wages, taxes, etc.)

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