Gross Profit Is Calculated As Net Sales Minus

Gross profit is an important metric that helps measure the success of a business. It can be calculated as the difference between net sales and cost of goods sold (COGS). This figure reflects how much money was made after all direct expenses have been taken into account, allowing businesses to determine whether they are on track to make their financial goals. Put simply, gross profit is like finding the “bottom line” of your operations – it indicates the real value being generated from your efforts.