Businesses produce revenues through selling their goods and services to interested customers. To acquire the products intended for sale, businesses must either manufacture or purchase them from their ...

Gross margin, often referred to as gross profit margin, is a key financial metric used to evaluate a company’s profitability and operational efficiency. It’s calculated by deducting the total cost of ...

Gross margin is a top line item in a company’s income statement measuring profitability after production costs have been deducted. Gross margin is the amount of money left over after subtracting the ...

Both metrics assess a company's profitability, but in different ways Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor.

The gross margin, often expressed as a percentage, provides a clear and concise insight into a company's fundamental profitability. It specifically tells you how much money a company retains from ...

Gross profit margin is a ratio that measures the percentage of revenue left after subtracting production costs. By indicating the profitability of a company's core business operations, gross profit ...

When you own a business, you need to understand how much money you make compared to how much you spend. That means you need to grasp profit margins. But while it’s crucial to know how to calculate ...

Gross profit margin is one of the most crucial barometers of your company’s financial health and competitiveness within its industry—specifically, it helps you evaluate your production efficiency ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Vikki Velasquez is a researcher and writer ...

Opinions expressed by Entrepreneur contributors are their own. Confusion frequently surrounds the meaning of gross margin and markup, probably because they are two different ways of expressing the ...

For a small business, setting the prices of the products it offers is a critical task. If you price your items too high, your customers will go to your competitors ...

Gross margin measures the percentage of revenue after direct costs are subtracted. Calculating gross margin involves subtracting COGS from revenue and dividing by total revenue. High gross margin ...