oboloo Glossary

Gross Profit Percentage Formula Accounting

oboloo Glossary

Gross Profit Percentage Formula Accounting

The Gross Profit Percentage Formula Accounting is a business-critical tool used to measure the profitability of an organization. By calculating the gross profit margin, managers can quickly assess whether their company is making more money than it’s spending. In order to find the gross profit percentage, you must divide your company’s gross profit by its total sales revenue. This number will then tell you how much of every dollar earned is going towards profits. Knowing this information can help you make important decisions about budgeting and investments, ensuring that your finances remain healthy.