Retail Formulas
- Acid - Test Ratio»
- Average Inventory»
- Basic Retailing Formula»
- Break - Even Analysis»
- Contribution Margin»
- Cost of Goods Sold»
- Gross Margin»
- Gross Margin Return on Investment»
- Initial Markup %»
- Inventory Turnover»
- Maintained Markup»
- Margin %»
- Markup»
- Net Sales»
- Open to Buy»
- Percentage Increase/Decrease»
- Quick Ratio»
- Reductions»
- Sales per Square Foot»
- Sell - Through Rate»
- Stock to Sales Ratio»
Gross Margin
Gross margin, Gross profit margin or Gross Profit Rate is the difference between the sales and the production costs including the overhead. Gross margin can be defined as the amount of contribution to the business enterprise, after paying for direct-fixed and direct-variable unit costs, required to cover overheads (fixed commitments) and provide a buffer for unknown items. It expresses the relationship between gross profit and sales revenue.
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