Definition
Gross profit is the difference between revenue and the cost of goods sold (COGS), showing the profit made from core business activities before other expenses are deducted.
Related Services
Financial analysis, tax consulting, and performance optimization services help businesses maximize gross profit by reducing COGS and improving operational efficiency.
Problem and Application
Gross profit is essential for assessing business health, but it doesn't account for other operating expenses, which can affect overall profitability.
Conclusion
Gross profit provides valuable insights into a company's ability to generate revenue from its core operations, and it should be optimized to improve financial performance.
