Margins: Gross vs. Net
July 28, 2003 | Business & Commerce
Point of interest: Gross margins refer to your sales (revenue) minus the cost of goods sold (COGS). So if a store buys beer at $4 a sixpack and sells it at $6 a sixpack, the gross margin is $2, or in this case 33%. Net margins are what's left after paying for everything else: salaries, rent, electricity, etc. Net margins = profits. It's what you get taxed on.
Comments
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)
