Verbull Word of the day
Finance glossary

Gross Profit

Accounting · beginner
Definition

Revenue minus the direct cost of producing goods sold.

Gross profit is revenue less the cost of goods sold, capturing the profit from core production before operating expenses, interest, and taxes. It measures how efficiently a company makes its products and is the basis for the gross margin percentage.

In a sentence

Subtracting production costs from sales left a gross profit of $40 million.

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