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Gross Profit Margin

Definition of this KPI:
Gross Profit Margin is a financial metric that assesses a company's profitability by measuring the percentage of revenue that remains after deducting the cost of goods sold (COGS). It's a key performance indicator (KPI) that provides insights into a company's ability to generate profit from its core operational activities.


  • This KPI can be calculated as: (Revenue - COGS) / Revenue
  • The KPI will be measured as: percentage (%)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Financial stability
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