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I am not sure John knows what it means, that definition he posted is misleading, and doesn’t related to the 27% profit margins from his other post.In the case of Woolworths and most businesses, Gross profit is simply “ “ revenue” minus the “ “cost of goods solds (COGS)”So if Woolies buys a mars bar for $1 and sold it $1.50, they make a “Gross profit” of $0.50 or 33%.But from that $0.50 gross profit, you have to deduct wages, rents, energy bills, equipment costs/depreciation etc etc etc.Once you deduct all the other costs, you are left with Net profit, then you deduct the tax and you get Net profit after tax, which is about 2.5% of total sales.
I am not sure John knows what it means, that definition he posted is misleading, and doesn’t related to the 27% profit margins from his other post.
In the case of Woolworths and most businesses, Gross profit is simply “ “ revenue” minus the “ “cost of goods solds (COGS)”
So if Woolies buys a mars bar for $1 and sold it $1.50, they make a “Gross profit” of $0.50 or 33%.
But from that $0.50 gross profit, you have to deduct wages, rents, energy bills, equipment costs/depreciation etc etc etc.
Once you deduct all the other costs, you are left with Net profit, then you deduct the tax and you get Net profit after tax, which is about 2.5% of total sales.
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