In finance, a company's gross margin is simply the difference between revenue and cost of goods sold (COGS) divided by that revenue figure. Unlike gross profits, which are expressed as absolute dollar amounts, gross margins are e꧙xpres𓂃sed in percentage forms.

The calculation for gross margin is expressed by th♔e following equation:

$\begin{aligned} &\text{Gross Margin} = \left ( \frac{ \text{Revenue} - \text{COGS} }{ \text{Revenue} } \right ) \times 100 \\ &\textbf{where:} \\ &\text{COGS} = \text{Cost of goods sold} \\ \end{aligned}$​Gross Margin=(RevenueRevenue−COGS​)×100where:COGS=Cost of goods sold​

澳洲幸运𓂃5开奖号码历史查询:Gross margin is merely 𒀰one measurement of a company's profitability because it solely factors the costs of doing business directly related to production. To further refine this profitability metric, a company next generally deducts all of its common overhead and operating expenses, including wages, as well as any administrative, facilities, marketing, and advertising costs. The figure that remains after subtracting these values is known as the operating margin, which is also known by the phrase "earnings before interest and taxes, or EBIT."

The final profitability calculation, which shows a company's🎀 actual net profits or net profit margin, subtracts interest, taxes, gains, or losses from investments, as well as any other extraneous costs the company may have incurred, that weren't included in the calculations for gross margin or operating m﷽argin.