What if i have both the cost of sales and inventory at start and end

July 7, 2026Accounting

ScanSolve AI Answer

Answer

If you have the cost of sales, that figure is equivalent to the Cost of Goods Sold (COGS).

3 steps

The formula for gross margin remains the same:

\text{Gross Margin} = \frac{\text{Revenue} - \text{Cost of Goods Sold}}{\text{Revenue}} \times 100\%

Use the provided "cost of sales" figure as your Cost of Goods Sold (COGS).
You will still need the total revenue figure.
Substitute these values into the gross margin formula.
The inventory at the start and end of the period is used to calculate the Cost of Goods Sold if it's not directly provided. However, since you already have the "cost of sales" figure, you do not need the inventory figures for the gross margin calculation itself.