GLOSSARY

Gross profit expressed as a percentage of revenue, calculated as revenue minus cost of goods sold, divided by revenue, multiplied by 100.

It supports forecasting, prioritisation and cross-functional decisions when definitions and source data are consistent.

A cross-functional team applies Gross Profit Margin (GPM) in a production initiative, defines ownership and success criteria, tests representative scenarios, monitors outcomes and records corrective actions before scaling.

The measure or method can mislead when definitions, cohorts, margins, periods or source systems differ. It should not be interpreted without context.

Gross profit expressed as a percentage of revenue, calculated as revenue minus cost of goods sold, divided by revenue, multiplied by 100. It should be defined with an explicit population, period, data source and calculation rule. Revenue teams should govern lifecycle stages, ownership and reconciliation so the value is comparable over time and connected to commercial decisions.