Calculation of gross profit margin


Task:

Gross profit margin

76589/78807×100=97%

What is it mean if my gross profit margin is that high and what represent if the next year this percentage goes higher or lower?

Net profit margin

-15400/ 30000x 100%= -51%

What is it mean if my net profit margin is that low, goes to negative, what does it mean if this percentage goes higher or lower?

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Accounting Basics: Calculation of gross profit margin
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