Gross Margin
Percentage of revenue left after subtracting direct costs of goods sold.
What is Gross Margin?
Gross margin is the share of revenue a business keeps after subtracting the direct costs of producing its goods or services, known as cost of goods sold. It is calculated as revenue minus cost of goods sold, divided by revenue, and expressed as a percentage. A higher gross margin means more money is left over to cover operating expenses and generate profit.