Inventory is an asset. Figuring its value is important when you're running financial metrics, just like knowing the value of your factory or the expense of administrative overhead. The gross profit ...

The gross profit method is a technique often used to value inventory, but it can also be used to find the value of sales. This method helps you determine your gross profit percentage, and therefore ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

Gross profit margin is a ratio that measures the percentage of revenue left after subtracting production costs. By indicating the profitability of a company's core business operations, gross profit ...

Gross profit and gross margin show the profitability of a company when comparing revenue to the costs involved in production. Both metrics are derived from a company's income statement and share ...

Gross profit margin measures profitability by dividing gross profit by revenue. A high gross profit margin indicates efficient cost management and pricing strategy. Comparing a company's margin with ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Profit margin conveys the relative ...