PROFIT.pptx

Gross Profit

The gross income from sales after deducting the cost of sales.

Gross Profit Margin

The percentage that measures the relationship between gross profit and net sales.

Operating Profit Margin Rate

The measure of profitability that indicates the percentage of gross profit remaining after operating expenses.

Operating Expenses

Costs incurred by a business during a specific period that do not provide future benefits.

Net Profit Margin

The percentage of revenue remaining after all expenses, including operating expenses and income tax, are deducted.

Financial Statements

Records that communicate information about a company's financial performance, including sales, expenses, and profits or losses.

Cost

The total purchase price of a product, including all expenses related to its production.

Profitability Ratios

Metrics used to assess a company's ability to generate profit relative to its revenue, costs, or assets.

Net Sales

Total revenue from sales minus returns, allowances, and discounts.

Gross Profit Rate

The ratio calculated by dividing gross profit by net sales, expressed as a percentage.