What is Gross Profit Margin? #shorts

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Gross profit margin is a financial metric that reflects the percentage of total sales revenue that exceeds the cost of goods sold.

Think of it like this: If a company sells a toy for $10 that cost $6 to make, they've made $4. The gross profit margin shows $4 as a percentage of the $10 sale.

A higher percentage means the company is doing a good job keeping production costs down.

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All clips used for fair use commentary, criticism, and educational purposes. See Hosseinzadeh v. Klein, 276 F.Supp.3d 34 (S.D.N.Y. 2017); Equals Three, LLC v. Jukin Media, Inc., 139 F. Supp. 3d 1094 (C.D. Cal. 2015).
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