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hello everyone hi welcome to the channel of WallStreetmojo friends today we are going to learn a topic that is called gross profit margin formula this particular ratio is a part of ratio analysis now letamp;#39;s try and understand the formula the gross profit margin formula goes something like this it is basically your gross profit which can be lowered high divided by your total revenue which is your seats now letamp;#39;s start understanding this formula in a more detailed fashion at every level okay the investor needs to do what he needs to investigate he or she needs to know how and read first what what is the first thing he need to do the investor needs to do investigation second he or she needs to know every aspect of the business is doing so when an investor looks at the income statement that is what we are talking about the Pamp;amp;L statement profit and loss statement itamp;#39;s it isnamp;#39;t enough to check the profitability ratio like net profit margin you know ita