What is 'Gross Profit Margin'?

A gross profit margin is a financial metric used to assess financial health and is equal to revenue less cost of goods sold as a percent of total revenue. A financial metric used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin is a financial metric used to assess a company's financial health and business model by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS). Gross profit margin, also known as gross margin, is calculated by dividing gross profit by revenues.

Source : Investopedia