What is the Difference Between Revenue and Gross Profit?
Revenue and gross profit are two important financial metrics used to measure the performance of a business. Revenue is the total amount of money that a company earns from its sales or services over a given period of time. Gross profit, on the other hand, is the difference between revenue and the cost of goods sold (COGS). It is calculated by subtracting the COGS from the total revenue. Gross profit is an indicator of a company’s profitability and can be used to measure how efficiently a business is operating.