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How do you calculate a stock's gross profit margin percentage?

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@heather

To calculate a stock's gross profit margin percentage, you need two essential components: net sales/revenue and cost of goods sold (COGS) for the same period.

The formula to calculate the gross profit margin percentage is:

Gross Profit Margin Percentage = (Net Sales - COGS) / Net Sales * 100

Here's an example to illustrate the calculation:

- Identify the net sales: Let's assume a company's net sales for a particular period is $1,000,000.
- Determine the cost of goods sold (COGS): Let's say the COGS for the same period is $600,000.
- Substitute the values into the formula: Gross Profit Margin Percentage = ($1,000,000 - $600,000) / $1,000,000 * 100 = $400,000 / $1,000,000 * 100 = 0.4 * 100 = 40%

Therefore, the company has a gross profit margin percentage of 40% for that period.

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