The National Directory of Certified Public Accountants

Ask A CPA - Buying & Selling a Business

What Is The Gross Profit Margin As It Relates To Financial Statements ?

The Gross Profit Margin measures the percentage of each sales dollar remaining after the business has paid for its goods. The higher the gross profit margin the better and the lower the relative cost of merchandise sold. Sales minus cost of goods sold divided by sales = Gross Profit Margin.

If you need professional help with "Buying & Selling a Business" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.