While analysing companies, one of the basic Profitability Ratio is the Gross Profit margin ratio.
Basically, GP Margin ratio indicates the amount of Gross Profit the company makes on each dollar of Sales.
The formula for Gross Profit margin is
( Gross Profit / Total Sales ) * 100
Gross Profit can be obtained by reducing Cost of Goods Sold from the Revenue.
More detailed analysis on this topic has been made on Gross Profit margin ratio and interpretation.
- Now, this template helps you calculate the GP margin easily.
- We have used the financials of Walmart to illustrate the calculations.
- The temperate already has the Balance Sheet and Income Statement in separate working sheet.
- You can replace that with financials of any company to arrive at GP Margin Ratio