Monday, August 11, 2014

What is the difference between operating profit and profit margin?

What is the difference between operating profit and profit margin?
Gross Margin = (Gross Profit/Sales)*100

Gross Profit = Sales - Cost of Sales

Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.

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