Other Definitions
gross margin (dict)

Gross Margin

Gross margin is the ratio of gross profit to sales revenue. Gross Margin= (Revenue - Cost of Goods Sold)/Revenue Higher gross margins for a manufacturer reflect greater efficiency in turning raw materials into income. For a retailer it will be their markup over wholesale. Larger gross margins are generally good for companies with the exception of discount retailers who need to show that operations efficiency and financing allows them to operate with tiny margins.

 

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