A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. The gross margin represents the percent of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services sold by a company.
 | | Gross Margin | | Gross margin is a company's total sales revenue minus its cost of goods sold (COGS), divided by total sales revenue, expressed as a percentage. The gross margin represents the percent of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services it sells. The higher the percentage, the more the company retains on each dollar of sales, to service its other costs and debt obligations. | | Breaking it Down: | | The gross margin number represents the portion of each dollar of revenue that the company retains as... | | Read More » | | Related to "Gross Margin" | | | | Gross Earnings | | Gross earnings, from an accounting, perspective are the amount of revenue left over from after the cost of goods sold are deducted. | | Read More » | | | Profitability Ratios | | Profitability ratios are a class of financial metrics that are used to assess a business's ability to generate earnings relative to its associated expenses | | Read More » | | | Marginal Profit | | Marginal profit is the profit earned by a firm or individual when one additional unit is produced and sold. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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