Gross Profit Margin: Formula and Calculation Using the following formula, you can easily calculate gross profit margin: Gross Profit Margin = (Revenue – Cost of Goods Sold) / Revenue x 100 For ...

Net Profit Margin = (Net Profit / Revenue) x 100 To calculate the net profit margin, divide the net profit by total revenue and multiply by 100 to express the value as a percentage. For example ...

Gross margin ratio shows a company’s gross profit as a percentage of its total revenue. This ratio provides an understanding of how efficiently a company is managing its production costs.

For example, let's say you invest $5,000 in ABC stock by using $2,500 in cash and $2,500 of margin. If the stock appreciates by 20% to $6,000, you'll actually make 40% on your $2,500 investment ...