Microsoft Excel Formulas and Functions (Office 2021 and Microsoft 365) by Paul McFedries

Author:Paul McFedries [Paul McFedries]
Language: eng
Format: epub
Publisher: Microsoft Press
Published: 2022-02-16T00:00:00+00:00

FIGURE 10-14 This formula calculates the cost of goods sold.

Gross margin

The gross margin (or gross profit margin) is the percentage of revenue that a company retains after taking into account the direct costs associated with producing a particular good or service (or the company’s entire portfolio of goods or services). The higher the gross margin, the more money the company retains from each dollar of revenue and the more money the company can direct elsewhere, such as debt repayment, indirect expenses, or shareholder dividends. Here’s the formula:

Click here to view code image

=(Revenue – Direct Costs) / Revenue

For example, if a product’s revenue is $145,000 and its direct costs are $62,000, then the product’s gross margin is ($145,000 – $62,000) / $145,000, or 57.2 percent (see Figure 10-15).

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.