This workflow calculates the Gross Profit Margin (GPM) KPI, as per the following formula:
GPM = ((Revenue - Cost of Goods Sold (COGS)/Revenue) * 100
The Revenue and COGS is computed before the formula is applied. These are calculated as follows:
- Revenue = Total Sales + Shipping Charges
Revenue is the money that the company makes from end customer
-- COGS = Delivery Cost + Storage Cost + Quantity * (Material Cost + Miscellaneous Cost + Assembly Cost)
COGS is the cost that a company endures in producing goods or services.
The Gross Profit Margin is essentially the Gross Profit (GP) measured as percentage of Revenue, where, GP is COGS subtracted from Revenue.