Gross Profit Margin

Gross Profit Margin

Gross Profit Margin is a key performance indicator that shows the percentage of company’s revenue without the costs associated with the production of goods or services the company provides. Gross Profit Margin is the ratio of Gross Profit to Revenue. Gross Profit Margin is calculated by the following formula:

Gross Profit Margin = Gross Profit/Revenue

Revenue is a total amount in money the company has for selling their goods and services. Revenue is calculated by the formula:

Revenue (REVs) = Quantity of units sold x Cost per unit

Gross Profit = Revenue (or REVs) - Cost of Goods Sold.

So the formula for calculating Gross Profit Margin looks like this:

Gross Profit Margin = (Revenue (or REVs) - Cost of Goods Sold (or COGS)) / Revenue

Gross Profit Margin KPI lets estimate the company’s financial health and compare the efficiency with the competitors. Gross Profit Margin KPI shows how much the company earns on each dollar of sold product or service and can pay other overhead costs. If the company’s Gross Profit Margin Ratio is more than 30 %, the company can be considered successful.

To calculate Gross Profit Margin please do the following:

• Create custom field "Gross Profit"

Gross Profit KPI

• Create custom field "Revenue" (REVs) with the following formula:

$cf_units_quantity * $cf_cost_per_unit



• Create custom field "Gross Profit Margin"



• On Task Tree select task group for which you need to display Gross Profit Margin and select "Custom fields options"



• Set the following custom fields settings for the following custom fields:  "Units Quantity" and "Cost per unit" used to calculate "Revenue"
  • - In "Settings for" select "This task group"
  • - select "Enable"
  • - in "Aggregated (for task group)" field select "Sum" from drop-down list and the corresponding custom field name:



• Select custom field "REVs", "COGS", "Gross Profit" and "Gross Profit Margin" set the following settings for these custom fields:
  • - In "Settings for" select "This task group"
  • - select "Enable"
  • - select "Calculated by custom field formula (for task group)"











Gross Profit Margin KPI on Task Tree