By the end of the Craft series, you should have a good handle on practically everything you need to know about Rule Maker financial analysis. And finally, we'll conclude the experience with an in-depth report on our favorite 25 Rule Maker investment ideas, written specifically from the perspective of the qualitative factors that we'll be studying during the seminar. Or at least, that's what most people think. Another figure that is practically impenetrable to the ways of Wise bean-counters is gross profit. Gross profit is the dollar amount left over after subtracting the cost of making a product or delivering a service from the sales price.
Gross profit is measured two ways and is also commonly referred to as gross margin.
Don't be confused by the semantics. No matter what terms are used, the objective is to measure what is left over after a company makes a product or delivers a service. These costs are not directly associated with the production of the product or service. We are after the core of the company. How much is left over from widget sales after the parts are paid for.