Business

Profit Margin

Gross and net margin.

Inputs

Revenue

Total: $620,000.00
$
$

Cost of goods sold (COGS)

Total: $282,000.00
$
$
$

Operating expenses

Total: $187,000.00
$
$
$

Other income / expense

Total: $8,000.00
$

Federal corporate rate is 21%; add state as applicable.

Results

Gross margin
54.52%
(Revenue − COGS) ÷ Revenue
Net margin
18.22%
Net income ÷ Revenue
Operating margin
24.35%
EBIT ÷ Revenue
Markup on cost
119.86%
Gross profit ÷ COGS
Total revenue
$620,000.00
Gross profit
$338,000.00
Operating income
$151,000.00
Pretax income
$143,000.00
Income tax
$30,030.00
Net income
$112,970.00

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