Financial Glossary

Gross Margin

Profitability

What is Gross Margin?

Revenue minus cost of goods sold, divided by revenue, expressed as a percentage. Measures production or service delivery efficiency.

Why Gross Margin matters

Higher gross margins generally indicate stronger pricing power or lower production costs relative to peers.

Related terms in Profitability

Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.