Gross Margin

Gross margin is the percentage of revenue remaining after subtracting the cost of goods sold. It measures the profitability of core products or services.

Higher gross margin generally indicates better pricing power or cost control. It is a key metric on the income statement and influences net income.

Related Terms

Income Statement

An income statement is a financial statement that summarizes revenue, expenses, and profit over a sp...

Net Income

Net income is a company's profit after all expenses, taxes, and interest are deducted from revenue. ...

Balance Sheet

A balance sheet is a financial statement that reports a company's assets, liabilities, and sharehold...

Credit

In banking, a credit is a transaction that increases the balance in your account. On your bank state...

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