Gross Profit
Sales Margin
Sales margin, also known as profit margin, is a financial metric that indicates the percentage of revenue that exceeds the cost of goods sold (COGS). It measures the profitability of a product, service, or business. The sales margin can be calculated using the following formula:
Sales Margin = (Net Sales − Cost of Goods Sold) ÷ Net Sales × 100
Net Sales
Net Sales is the revenue from selling goods or services after deducting returns, allowances for damaged or missing goods, and any discounts allowed.
Cost of Goods Sold (COGS)
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