Business Insights—Gross Profit Margin Ratio

This window displays comparisons of gross profit margin for each month of the selected fiscal periods. The top half of the window shows amounts in a table format, the bottom half displays a line graph to represent the comparison. The Gross Profit Margin Ratio is calculated as follows:

Gross Profit Margin Ratio = Gross Profit divided by Sales

For information about how amounts are calculated and defined, see Business Insights—Introduction.

Amounts shown in this window are color coded:

■	Green indicates an increase in the gross profit margin from the prior period. Increasing gross profit means that for every dollar of sales, a larger percentage is available to apply against other costs.

■	Red indicates a decrease in the gross profit margin from the prior period. A decrease in gross profit margin is usually caused by a decrease in the sales price or an increase in direct costs.

■	Blue means there has been no change in the gross profit margin from the prior period.

Tips for this window

Related Topics

■	Tracking financial information

■	Reviewing financial information