What does a gross profit margin of 20% mean?
Asked 3 years ago
I am currently doing a case study that spins a story about a business that recycles waste from homes and has started generating a gross profit margin of 20%. What does this mean?
Payton Lynn
Thursday, February 10, 2022
The gross profit margin shows how much profit a business makes after paying its Cost of Goods Sold(COGS). Click here to know more about gross profit margin.
A 20% gross profit margin means that for every $1 of revenue the business gets $0.2 0 as gross profit while the $0.80 is used to pay for the COGS.
Please follow our Community Guidelines
Related Articles
Best Profit Calculator Apps for Shopify
Brody Hall
May 2, 2023
How to Increase Your Shopify Conversion Rate
Brody Hall
July 1, 2022
5 Essential Shipping Performance Metrics For E-commerce Stores
Rosana Antoni
June 9, 2023
Related Posts
Blog
Ashley Stander
Gross Profit vs. Gross Margin: How Do They Differ?
Blog
Ashley Stander
How to Track and Calculate Your Profit on Amazon FBA
Can't find what you're looking for?