Here are the formulas for calculating different types of profit margins:
- Gross Profit Margin: (Revenue - COGS) / Revenue * 100 - Operating Profit Margin: Operating Income / Revenue * 100 - Net Profit Margin: Net Income / Revenue * 100
For example, if a company has $500,000 in revenue and $300,000 in COGS, the gross profit margin would be (($500,000 - $300,000) / $500,000) * 100 = 40%.