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About Gross Profit Margin
The Gross Profit Margin measures the Gross Profit in relation to the Net Sales. This will reveal how much profit remains out of each dollar of sales.
Interpreting the Calculator Results
If Gross Profit Margin increases over time:
An increasing Gross Profit Margin usually shows the company is been more able to control its costs while generating sales.
If Gross Profit Margin decreases over time:
A decreasing Gross Profit Margin usually shows the company is been less able to control its costs while generating sales.
If Gross Profit Margin stays the same over time:
An unchanged Gross Profit Margin usually shows the ablility of the company to control its costs while generating sales has remained the same.