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Hey there welcome back to Accounting Stuff Iamp;#39;m James and today weamp;#39;re kicking off a new series covering financial ratios these are thetools that help us analyze financial statements first up Gross Profit Margin What is Gross Profit Margin? Gross Profit Margin is Gross Profit divided byRevenue itamp;#39;s a profitability ratio that measures a businessamp;#39;s ability to generate Gross Profitfrom each unit of Revenue earned we often show it as a percentage so if thatamp;#39;s the casethen remember to multiply by 100 Gross Profit is a businessamp;#39;s Revenue minusits direct Cost of Sales so hereamp;#39;s another way to write the same equation and keep in mindthat Cost of Sales goes by a few different names Cost of Services if a business sells services and Cost of Goods Sold if it sells products anyway letamp;#39;s break this down so we can get a full understanding of how Gross Profit Margin works weamp;#39;ll start with Profit you can find businessesPro
