Gross Profit

Gross profit is a financial metric that represents the amount of money a company has left after deducting the cost of goods sold (COGS) from its revenue. It reflects the profitability of a company's core operations before considering other expenses. In simple terms, gross profit shows how much money a company makes from selling its products or services, taking into account the direct costs associated with producing or delivering them. By analyzing gross profit, businesses can assess their pricing strategies, production efficiency, and overall profitability at the initial stage of the value chain.