TL;DR
Gross profit margin shows the percentage of gross profit from total revenue, while net profit margin indicates the percentage of net profit obtained after all expenses are deducted from gross profit. For example, a company with a gross profit margin of 40% and a net profit margin of 10% earns 40 TL gross profit and 10 TL net profit from every 100 TL of revenue.
8 min readGross vs net margin differences. Cross-sector comparison and BIST average margin data.
Gross and Net Profit Margin
This metric is a key component of fundamental analysis. It should be evaluated alongside the P/E ratio and P/B ratio.
How to Calculate
See our financial statement analysis guide for calculation details. Stock valuation methods use this metric alongside other measures.
Application on BIST
Filter by this metric in Borsafolio's stock screener. Each stock detail page provides quarterly financials and comparative metrics.
Screen BIST stocks by financial metrics.
Open Stock Screener →Related articles: Fundamental Analysis Guide, P/E Ratio, P/B Ratio, Financial Statements.
Frequently Asked Questions
What is gross profit margin?
Gross profit margin expresses the percentage of gross profit from total revenue for a company. For example, a company with 100,000 TL in revenue and 60,000 TL in gross profit has a gross profit margin of 60%.
What is net profit margin?
Net profit margin is the percentage of net profit obtained after all expenses are deducted from gross profit. For instance, a company with 100,000 TL in revenue and 10,000 TL in net profit has a net profit margin of 10%.
What is the difference between gross and net profit margin?
Gross profit margin shows only the profit obtained after sales, while net profit margin is calculated considering all expenses. Therefore, net profit margin is usually lower than gross profit margin.
How to analyze gross and net profit margins in BIST?
In BIST, gross and net profit margins can be analyzed using the Borsafolio stock screener. Each stock detail page provides quarterly financial statements and comparative metrics.
This content does not constitute investment advice. Past performance is not a guarantee of future results. Make your investment decisions based on your own risk profile.
