|
Gross Profit Margin %
|
Gross Profit (Turnover less
cost of sales) X 100 |
|
Turnover |
Benchmark: 10%
Gross
profit as a percentage of sales less VAT.
Gross
profit is the profit generated from sales less costs of sales (stocks,
warehousing, distribution and store costs) but before administration expenses.
The
ratio gives a good indication of the retail margin before administration is
accounted for.
Again,
the benchmark figure will depend on the trading format.
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