Financial modelling terms explained

Gross Profit

Gross profit is the profit a business makes after subtracting all the costs that are related to manufacturing and selling its products or services. You can calculate gross profit by deducting the cost of goods sold (COGS) from your total sales.

What is Gross Profit?

Gross Profit is the profit a company makes after deducting the cost of goods sold from its revenue. It is calculated by subtracting the cost of goods sold from total revenue. The cost of goods sold includes the cost of the materials used to produce the products, the cost of labor, and the cost of any other expenses incurred in the production process.

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