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It indicates the company’s profit and net profit after deducting all the expenses. The higher profit margin and higher profit are reflected in the income statement, and it is crucial in evaluating the company’s performance. The margin ratio, which is the percentage of revenue left after deducting all costs, is a significant indicator of the company’s efficiency in managing its expenses and generating profit. To calculate the gross profit, you must subtract the cost of goods sold (COG) from the total revenue.<\/p>\n<\/p>\n