Name: Gross Margin calculation in Tableau
Uploaded: 2020-03-24T05:23:25.000Z
Duration: 3 min 13 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

We’ve seen quite a few interesting Tableau tools so far and we’ll continue to do so

Now that I think about it, one thing we should probably add is a Gross Margin calculation

Gross Margin is useful as it allows us to see what portion of revenues were converted

into gross profit once we have considered the cost of goods sold.

All we have to do is divide Gross Profit by Revenue, right?

I’ll insert it in the measure values card.

I’ve added the new field right next to Gross Profit.

If we divide Gross Profit by Revenues, we would usually expect a number in the region

When I divide 71 million by 244 million, which is what we have in January, I obtain 29 percent

Either Tableau miscalculated the simple division we asked it to perform, or our formula is

It’s most likely us and not the computer, right?

Let’s right-click on this field and edit the calculation for a second.

What we forgot to do is type “SUM” around the two variables.

If we don’t sum the variables, we are not dividing their total figures for each month.

Let’s adjust our calculated field in this way and see what happens.

This is a column with numbers that look like 0s.

Let’s change the way the “GM%” column is displayed.

To do that, I’ll simply click on the “GM% variable” in the measure values card and

We have quite a few options available here, so I’ll simply select a percentage format

In our next lesson, we’ll add a filter that would allow us to choose whether to see both

2016 and 2017 values, or just one at a time.