How do you calculate gross profit percentage in accounting?
Asked By: Gertrude Kerluke
Date created: Sat, May 15, 2021 5:59 AM
Date updated: Fri, Jun 24, 2022 3:25 PM
Top best answers to the question «How do you calculate gross profit percentage in accounting»
A company's gross profit margin percentage is calculated by first subtracting the cost of goods sold (COGS) from the net sales (gross revenues minus returns, allowances, and discounts). This figure is then divided by net sales, to calculate the gross profit margin in percentage terms.