Gross Profit represents revenue minus the cost of goods sold (COGS). It shows how much a company earns from its products/services before operating expenses.
Gross Profit Breakdown
Revenue
$416.16B
Cost of Revenue
$220.94B
Gross Profit
$195.22B
Gross Margin
46.9%
Formula: Gross Profit = Revenue - Cost of Goods Sold (COGS)
Why Gross Profit matters:
Shows pricing power and production efficiency
High gross profit allows for investment in R&D and marketing
Consistent gross margins indicate stable competitive position
First line of profitability before operating expenses