Gross margin (as a percentage of Revenue). Most people find it easier to work with gross margin because it directly tells you how much of the sales revenue, or price, is profit. In reference to the two examples above: The $200 price that includes a 100% markup represents a 50% gross margin.
https://en.wikipedia.org/wiki/Gross_margin
Gross margin is just the percentage of the selling price that is profit. In this case 50% of the price is profit, or $100. In the more complex example of selling price $339, a markup of 66% represents approximately a 40% gross margin. This means that 40% of the $339 is profit.
https://en.wikipedia.org/wiki/Gross_margin
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https://quizlet.com/13456421/ch-5-financial-ratios-formulas-flash-cards/
Interest Coverage. Indicates how many dollars of earnings (before interest and taxes) are available to satisfy interest expense obligations (i.e. how many times per year a company can satisfy its interest payments).
https://quizlet.com/13456421/ch-5-financial-ratios-formulas-flash-cards/
Step 2. Subtract the company's cost of goods sold from the revenues to calculate the company's profit for the year. For example, if a company had $100 million in profits and $80 million in the cost of goods sold, you would subtract $80 million from $100 million to get $20 million.
http://smallbusiness.chron.com/calculate-gross-profit-margin-ratio-828.html
Calculate the gross margin percentage, mark up percentage and gross profit of a sale from the cost and revenue, or selling price, of an item. * Revenue = Selling Price.
http://www.calculatorsoup.com/calculators/financial/margin-calculator.php
Gross margin is the difference between net revenue and cost of goods sold, or COGS, divided by revenue, expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (production or acquisition costs, essentially).
https://en.wikipedia.org/wiki/Gross_margin
Gross Margin (%) = (Revenue – Cost of goods sold) / Revenue. It can be expressed in absolute terms: Gross margin = net sales – cost of goods sold + annual sales return. or as the ratio of gross profit to revenue, usually in the form of a percentage:
https://en.wikipedia.org/wiki/Gross_margin
Step 3. Divide the company's gross profit by the total revenues. In this example, you would divide $20 million by $100 million to get 0.2. Step 4. Convert the result from Step 3 to a profit per dollar earned ratio by plugging the result into the phrase $X of profit per dollar of revenue, where X is the result. Finishing the example, you would plug in 0.2 for X to find the gross profit margin ratio is $0.20 of profit per dollar of revenue.
http://smallbusiness.chron.com/calculate-gross-profit-margin-ratio-828.html
Margin Formulas/Calculations: 1  The gross profit P is the difference between the cost to make a product C and the selling price or revenue R. 2  P = R-C. 3  The mark up percentage M is the profit P divided by the cost C to make the product. 4  M = P / C = (R-C) / C.
http://www.calculatorsoup.com/calculators/financial/margin-calculator.php
how to find gross margin ratio
A gross margin ratio is equal to net sales minus cost of goods sold plus annual sales return. To find gross margin ration is found by formula is the subtraction of revenue to Cost of goods sold divided by revenue. 