Explore commonly used personal finance terms.
Adjusted Gross Profit is the gross profit after accounting for adjustments like allowances, discounts, or returns. It offers a clearer view of actual profitability by removing the effects of one-time or non-operational items, making it easier to evaluate ongoing profitability. This metric helps businesses track financial performance, evaluate profitability trends, and compare results across periods, as well as providing a more realistic basis for strategic financial planning and decision-making.
