Gross Profit

Gross profit is a financial metric that represents the difference between a company’s revenue and its Cost of Goods Sold (COGS), showing how efficiently it produces and sells its goods or services. It reflects the profitability of core operations before accounting for overhead, taxes, interest, or other expenses. Gross profit is a key indicator of operational performance and margin strength, and it plays a central role in evaluating a business during M&A, especially when assessing scalability and competitive positioning.

P4i analyses gross profit trends and drivers to uncover value levers and support accurate valuation and negotiation in M&A transactions.