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Gross profit
Understanding Gross Profit on an Income Statement.
November 23, 2023
Can you explain the concept of gross profit as shown on an Income Statement?
Gross profit represents the difference between revenue and the cost of goods sold (COGS). It reflects the profitability of sales after deducting the direct costs of producing or purchasing the goods sold. It doesn't consider other expenses like operating costs or taxes.
Tags : Income Statement , Gross Profit , Financial Analysis