Gross Margin Definition

Below please find a definition of “Gross Margin”

Financial Analysis Training & Glossary TermsGross Margin: Often termed as gross profit margin, gross margin is calculated by dividing gross income by net sales. (Gross margin = Gross income / Net sales). Gross margin is a valuable indicator of the profitability of a company. The higher the gross margin, the better the chances a company has in investing money on other aspects of business operations.

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