What is bruttofortjeneste (gross profit)?

In short

Bruttofortjeneste is revenue minus the direct costs of delivering the product or service — cost of goods, subcontractors. It shows what is left to cover salaries and fixed costs.

In practice

In many Danish annual reports gross profit is the top line, because smaller companies may combine revenue and cost of goods for competitive reasons. As a percentage of revenue it is the gross margin.

Related terms

• Omsætning (revenue)
• Dækningsbidrag (contribution margin)
• Resultatopgørelse (income statement)
• See every term in the dictionary

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