Financial Education

Gross Margin

(Revenue − COGS) / Revenue

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Fundamental

Gross Margin

(Revenue − COGS) / Revenue

Definition

Gross margin measures profitability after direct costs of producing goods/services. Formula: (Revenue - Cost of Goods Sold) / Revenue. Higher margins indicate pricing power and efficiency. Compare across similar companies and industries.

Related Topics

#profitability #pricing power #cost control #margin analysis

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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