PTIN Seal

Buying & Selling a Business

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Buying & Selling a Business
  4. What is the Gross Profit Margin as it relates to Financial Statements ?

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.

Need Professional Help?

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