Gross Profit Margin
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Analysis and Interpretation of Financial Statements for Decision Making
MS: Peratus Untung Kasar · EN: Gross Profit Margin · ZH: 毛利率
Meaning
The gross profit margin shows the portion of gross profit in every ringgit of sales. It is calculated as (gross profit ÷ sales) × 100. This ratio helps assess pricing policy and the cost of goods purchased.
Example
Mesra Grocery has sales of RM200,000 and a gross profit of RM80,000. The gross profit margin is (80,000 ÷ 200,000) × 100 = 40%, meaning 40 sen of every RM1 of sales is gross profit.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5