understanding financial jargon
Gross profit is the difference between sales revenue and the cost of the goods or services sold, but before deducting overhead, payroll, taxation, and interest payments. This is different from operating profit (earnings before interest and taxes).
Therefore Gross Profit = Net sales – Cost of goods sold,
where Net Sales = Total Sales Revenue – Sales of returns and allowances.
It is also known as Gross income, Gross Margin, and Sales Profit.
What to do if you need more help
If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.
We hope you found this information useful.
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