Accounting for IGCSE & O level - Advanced Principles (Section 1 - No. 25)
The gross profit margin is calculated as:
Gross profit / revenue * 100%
Profit for the year / revenue * 100%
Gross profit / cost of goods sold * 100%
Revenue / gross profit * 100%
Explanation
The gross profit margin is a measure of how much gross profit is made as a percentage of revenue sales.