What is my gross profit margin percentage?

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Mitu6670
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Joined: Sun Dec 22, 2024 8:20 am

What is my gross profit margin percentage?

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3. How much does it cost me to produce what I sell?
Depending on your type of business, answering this question about your company's finances will be more or less easy.

A commercial activity that involves buying products to resell them with a margin is not the same as a service company or an industrial company.

4. What is my gross profit margin?
That is, the difference between the cost of sales and its sales price without taxes such as VAT .

Keep in mind that this margin is what has to cover the structure costs , also known as general costs.

The gross profit taiwan mobile number margin percentage is the ratio between the margin and the sales price without taxes such as VAT .

This information about your company's finances is especially useful when negotiating trade discounts.

And more than the percentage, the evolution of the margin over time is important to analyze the productivity and effectiveness of the business.

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6. How much do I spend on structure?
That is, the rest of the general expenses that are not directly related to the product or service.

For example, administration and promotion costs, office rental, etc.

7. What is the amount of the balances receivable?
That is, the money they owe the company , usually from tax refunds and customers.

It is especially important to know how they are evolving in order to detect possible liquidity problems or poor treasury management.

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