Gross Profit Margin

Gross Profit Margin is a financial metric that assesses a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS). It is calculated by dividing the gross profit by the total revenue. This ratio is an important indicator of the company's financial health, efficiency, and profitability. It's widely used to compare companies in the same industry and to assess the efficiency of a company's production processes.