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Gross profit report template

What is the gross profit on sales. Gross margin report example. What is a gross margin report. What does gross profit. What is a gross sales report.Month-on-month growth in your Profit & Loss is a vital metric to track to understand how your business is growing (or declining) every month. You should monitor how your revenue is growing, how your cost of goods sold is growing, and how your operating expenses are growing.We also highly recommend that you monitor how your gross margin isperforming on a month-by-month basis, as this has a huge impact on your bottom line. What is a Profit and Loss Statement?A Profit and Loss/Income statement is one of the core financial statements used worldwide to track the performance of a company. Understanding how the Profit and Loss statement works is a major advantage for businessowners, startup founders, and finance teams. What goes into a Profit and Loss/Income Statement?The P&L statement has three core sections.Revenue: As the word entails, revenue is the income that your business generates. Note, revenue is also referred to as Income or turnover in certain countries. Cost of Goods Sold (COGS): Cost of Goods Sold arethe expenses associated with selling your products. Here are a few examples: You are a coffee shop, and you sell lattes. The expenses that will go into your COGS are the coffee beans, milk, coffee cups, and sugar.You are an eCommerce business, and you sell t-shirts. The expenses that will go into your COGS are things like the materials for your tshirts and delivery fees. Gross Profit: Gross Profit is calculated by deducting the Cost of Goods Sold with your Revenue. If you made 100,000 in revenue and had COGS of 50,000, then your Gross Profit would be 50,000. Gross Margin: Underneath the Gross Profit item, you will often find Gross Margin. Gross Margin is one of the most vital P&Lmetrics to track closely, as this ultimately determines your product margins and whether you can sell your products with any profits. Gross Margin is calculated by dividing your Gross Profit with Revenue and multiplying by 100 to get the percentage. For the example above, our Gross Margin would be 50% ( 50,000/ 100,000*100 50%). OperatingExpenses: The next section on income statements is the Operating Expenses section, where you list all of your OpEx. An operating expense is any expense that's needed to keep the business running. For instance, payroll, office space, marketing, computers, materials, travel, etc. Operating Profit: Operating Profit is ultimately the amount of money youmake on the bottom line. Operating Profit is calculated by deducting your Operating Expenses with your Gross Profit (or Revenue minus COGS minus Operating Expenses). Operating Profit Margin: Operating Profit Margin is similar to Gross Margin; it's a percentage metric that is used to understand your profitability as a business. It's calculated bydividing your Operating Profit with your Revenue. Other Income and Expenses: Other income and expenses usually include ad-hoc income and expenses such as interest earned, dividends, etc. Net profit: And finally! You will your Net Profit (also referred to as EBITDA, earnings before interest, taxes, depreciation, and amortization). Small businessesshould be tracking all of these categories of the P&L closely to make sure they understand their core business metrics. It's also a great idea to closely monitor your Balance Sheet and Cash Flow. What’s the gross profit on the products and services that you sell in your small business? Organize your gross profit numbers in this easy-to-use template orspreadsheet. Gross Profit (GP) Forecast – 1 Year Worksheet PDF Gross Profit (GP) Forecast – 1 Year Worksheet Excel The gross profit (GP) forecast template and spreadsheet include categories for five types of your products and services, with slots for the gross profit for each product or service and the number of products and services sold. The stepby-step instructions that are included on the worksheet (e.g. “line A x line B line C”) make it easier to calculate the gross profit (GP) for your small business. Gross profit is the amount of money you make, after you pay for your cost of goods (COG), but before you subtract monthly overhead expenses. The gross profit forecast spreadsheet can beused to predict your gross profit this year, or to recap your gross profit from last year. Related Small Business Classes Online How To Calculate Gross Profit (GP) Jennifer Croft Comments Would-be entrepreneurs often confuse gross profit and net profit, as do small business owners with years of experience. Gross profit is the amount of money youmake after you subtract cost of goods. For example, if you sell 10,000 worth of products and services this month, and your cost of goods is 2,000, you have 8,000 in gross profit. Net profit is the amount of money you make after you subtract your overhead expenses. For example, if your monthly overhead expenses are 3,000, then your net profit(before taxes) will be 5,000 ( 8,000 in gross profit, minus 3,000 in overhead). This profit margin template will allow you to calculate the gross profit, EBITDA, and net profit margins. Below is a preview of the profit margin template: Download the Free Template Enter your name and email in the form below and download the free template now!Profit margin is a measure of a company’s earnings (or profits) relative to its revenue. The two main types of profit margins are gross profit margin (gross profit divided by revenue) and net profit margin (net income divided by revenue). Profit Margin Formula When assessing the profitability of a company, there are two main profit margin ratios toconsider – gross and net. Below is a breakdown of each formula. Gross Profit Margin Gross Profit / Revenue x 100 Net Profit Margin Net Income / Revenue x 100 What is a Good Profit Margin? You may be asking yourself, “what is a good profit margin?” A good margin will vary by industry, but as a general rule of thumb, a 10% net profit margin isconsidered average, a 20% margin is considered high (or “good”), and a 5% margin is low. Of course, these guidelines can vary widely by industry, company size, and a variety of other factors. More Free Templates For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, andWord document templates. Download the free Excel templates Download CFI’s free Profit and Loss template (P&L template) to easily create your own income statement. After downloading the Excel file, simply enter your own information in all of the blue font color cells which will automatically produce a monthly or annual statement as the output.The downloadable Excel file includes four templates. A Statement of Profit and Loss (also called an Income Statement) summarizes a company’s income and expenses for a period of time to arrive at its net earnings for the period. Download the Free Template Enter your name and email in the form below and download the free template now! Here arethe steps to follow to effectively use your templates: Download the Excel file (see all free templates) Use the monthly or annual worksheet, depending on what type of statement you want to produce Replace all the blue cells that contain hard-coded numbers with your company’s information Double-check to ensure all the formulas in black cells areworking properly Save as a new file and consider saving a version as PDF as well as XLS The two types of templates included in the file are shown below. #1 Monthly Profit and Loss Template (P&L Template) The monthly P&L template is perfect for businesses that require regular reporting and detail. By showing all of the information in a series ofmonthly columns, much more detail is visible than if only the annual figures were shown. The monthly profit and loss template is perfect for small, medium, and large businesses as it can easily be adjusted to add or eliminate detail as required. Learn more about monthly cash flow forecast modeling. Fill out the form above to download the Excel file.#2 Annual Profit and Loss Template (P&L Template) For businesses that have been in operation for several years, it may be helpful to show an annual (full fiscal year or year-to-date) statement. The annual profit and loss template below follows the same format and structure as the monthly version, however, it doesn’t have a total column at the endthat sums up each of the periods. This template is ideal for any size business and can easily be changed by adding or removing line items (rows) as necessary. It is also useful for performing year-over-year (YoY) analysis. Fill out the form above to download the free annual P&L template Excel file. Components of the Template While each incomestatement is unique to every company, there are many common line items that you will see over and over again. The most common P&L line items include: How to Modify the Profit and Loss Template (P&L Template) All the CFI templates included in the free Excel file can be easily edited and changed to suit your own business. If you require moreline items, simply insert additional rows in the section where you need to add revenues or expenses. Then check to make sure the formulas adding up the totals capture those new rows. If you need to remove line items from the templates, simply delete unnecessary rows and ensure all formulas are still working properly. To learn more about thedetails of financial reporting, check out PWC’s free guide to financial statement presentation . Additional Resources Thank you for checking out CFI’s free templates for making your own annual and monthly P&L statements in Excel. To keep learning and advancing your career as a certified financial analyst, these additional resources will be helpful:Capture your best moments with our premium photo album templates. DOWNLOAD THE TEMPLATES NOW. Make life easier by using a profit and loss template to monitor your company’s income and expenses. Everything you need, including income statement, breakeven analysis, profit and loss statement template, and balance sheet with financialratios, is available right at your fingertips. Profit and loss templates give you the information you need when you need it for peace of mind and transparency. Just plug in revenue and costs to your statement of profit and loss template to calculate your company’s profit by month or by year and the percentage change from a prior period. You’ll findprofit and loss templates in Excel are easy to use and configure to any business in minutes—no accounting degree necessary. You can access and modify any P&L template to include company name and logo to create professional looking documents to share with managers, partners, investors, and financial institutions. Download a free profit and losstemplate and start tracking your company’s finances today.