How to Measure Profitability in a Loss Making Business

Gross profit just says, right, how much do I sell the can of Coke for? Sort of for a buck, cool. So your sales are a dollar, your cost of goods sold, literally the cost of the things that you sold was 75 cents. What's left over is my gross profit of 25 cents. And that tells me how much of each dollar of sales I get to use to pay all of the rest of my costs. Now compare that to Woolies, which is about 26 cents in the dollar and plenty in between. We're not going to do every single line on the panel. Let's go straight to gross profit, and on the way, we'll describe