Glossary
Gross Margin
Gross margin is gross profit shown as a percentage of revenue — the share of each sales dollar left after the direct cost of the goods or services sold, but before overheads, interest and tax. It reveals the underlying profitability of what a business actually sells, which is why owners watch it closely in price-sensitive sectors. A part-time CFO often tracks gross margin by product line to spot where pricing or input costs are eroding profit.
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