Which financial metric represents revenue minus cost of goods sold?

The financial metric that represents revenue minus cost of goods sold is gross profit. This figure is crucial in assessing a company's basic profitability from its core operations and provides insight into how efficiently a business is producing and selling its products before accounting for other expenses.

Gross profit is calculated by subtracting the direct costs associated with the production of goods sold (the cost of goods sold or COGS) from total revenues. This calculation allows businesses to understand how much money is left over to cover operating expenses, taxes, and other costs after accounting for the costs directly tied to product production.

In contrast, net profit takes into account all expenses, including operating expenses, interest, and taxes, providing a broader view of overall profitability. Operating profit, on the other hand, includes gross profit but also subtracts operating expenses, and profit margin typically refers to net profit expressed as a percentage of revenue. Each of these metrics serves different analytical purposes, but the specific focus of gross profit on direct production costs directly connects to the calculation outlined in the question.