If the gross profit ratio is the same for two years, the financial position of the company is stable. It means the company is at the same break even point as the year before, but does not constitute growth of profit.
it mean the cost of sale sale of company increase or the direct cost increase
This would completely depend on how far the gross profit ratio decreased in the second year compared to the ratio at the start of the year.
Gross profit = sales - cost of good sold Gross profit margin = gross profit / sales *100 Gross profit = 240000- 108000 = 132000 Gross profit margin = 132000/240000 *100 Gross profit margin = 55%
Gross Profit is seen as the strongest indicator of a company's overall performance and portrays the increase in its revenues because it promptly gives an idea where the company stands at a particular time. It is obtained by deducting "cost of sales" from "overall sales".
Budgeted gross profit is the expected profit amount before the start of production run while actual gross profit is the actual amount of profit which company earns after the production and sales of product.
do some research
If revenue is less than costs, the gross profit is negative -- it is not a profitable company.
The gross profit ration tells you a lot about a company's performance during the year. You are able to tell the amount of goods that have been sold and when you less the profits you will get the net profit.
Financial Statements could be of a individual or a company/business.Personal Financial statement would give all the personal financial information of the individual, for ex. his years income, sources of his income, his expenses, things he spent on, etc.A company's or business's financial statement would give you the complete idea of the company including the income of the company, the expenses, the amount of money spent on labor, gross profit of the company, net profit, etc.Financial Statements are something that are used by any company requires to check your credit, for ex. you going to buy a car/house, etc.
Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
There are various steps to increase the gross profit. You have to increase the efficiency of the workers. The waste produced must be recycled to save money.
The Gross Profit is the amount in excess of the cost of goods sold. To get this we simply take sales $24,000 and subtract $10,800 to find a gross profit of $13,200