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Gross Margin
Finance

Gross Margin

Revenue minus cost of goods sold, usually expressed as an amount or percentage of revenue.

Examples

  1. 01With sales of EUR 10 million and COGS of EUR 7 million, the gross margin is EUR 3 million or 30 %.
  2. 02The monthly review compares gross margin by product line and sees one line falling below 20 %.
  3. 03A price increase and a material change together lift the gross margin of the weak line by 4 points.

Related terms

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