Of the Gross profit, Gross profit, also known as gross profit, is a key performance indicator from the income statement. It is calculated from the difference between sales revenue and the directly attributable costs incurred for the production or procurement of the products sold. For trading companies, this is the cost of goods sold; for production companies, it is the production costs of the services rendered to generate the sales revenue. Gross profit shows how much a company earns from its products before general operating costs such as administration, sales or rent are deducted. It is therefore an important indicator of the direct profitability of the core business as well as of production efficiency and the appropriateness of pricing. As one of the most important key performance indicators, gross profit is often prominently displayed in real-time dashboards such as the SAP Business One Cockpit offers. For a more in-depth analysis, controlling extensions such as the Versino Financial Suite the detailed analysis of gross profit according to various dimensions such as product groups, customers or regions.
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