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Everything about Gross margin
Gross profit as a percentage
Gross margin, or gross profit margin, is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold, then divided by the same selling price. "Gross margin" is often used interchangeably with "gross profit", however, the terms are different: "gross profit" is technically an absolute monetary amount, and "gross margin" is technically a percentage or ratio. Wikipedia →
🧭 Start here: a 6-step reading path
- Read the overview: Gross marginA 5-minute orientation
- Skim a recent paper: Pulsed rise and growth of the Tibetan Plateau to its northern margin since ca. 30 MaInfluential work since 2022
- Pick up a classic book: Marginación e ingreso en los municipios de MéxicoThe most-reprinted book on the subject
- Read the landmark paper: A Gross‐Margin Model for Defining Technoeconomic Benchmarks in the Electroreduction of CO2Cited 666 times
- Go sideways: Profit marginA closely related topic
- Go sideways: Operating marginA closely related topic
📖 Definitions
Noun The difference between revenue and direct cost, often expressed as the ratio gross margin percent.
🗂️ The subject at a glance
🏆 Landmark papers (most cited)
A Gross‐Margin Model for Defining Technoeconomic Benchmarks in the Electroreduction of CO2
Do Inventory and Gross Margin Data Improve Sales Forecasts for U.S. Public Retailers?
Profit Growth : Impact of Net Profit Margin, Gross Profit Margin and Total Assests Turnover
Accuracy of gross intraoperative margin assessment for breast cancer: experience since the SSO-ASTRO margin consensus guidelines
Liver Tumor Gross Margin Identification and Ablation Monitoring during Liver Radiofrequency Treatment
Assessing changes in third-party gross margin for a single community pharmacy
DESTINATION RETAILING: HIGH VOLUME, LOW GROSS MARGIN, LARGE‐SCALE FORMATS
Gross margin sales compensation plans
🆕 Influential since 2022
Pulsed rise and growth of the Tibetan Plateau to its northern margin since ca. 30 Ma
Influence of supramarginal resection on survival outcomes after gross-total resection of IDH–wild-type glioblastoma
Within-field yield stability and gross margin variations across corn fields and implications for precision conservation
From clinical variables to multiomics analysis: a margin morphology-based gross classification system for hepatocellular carcinoma stratification
Empirical examination of sustainability reporting, return on capital employed and gross profit margin
📚 Books worth reading
- 📕Marginación e ingreso en los municipios de MéxicoAdolfo Sánchez Almanza · 2000
Ranked by number of editions on Open Library, a rough measure of how lasting a book is.
🔗 Related topics
- Profit margin Profit margin is a financial ratio that measures the percentage of profit earned by a company in relation to its revenue. Expressed as a percentage, it…
- Operating margin In business, operating margin—also known as operating income margin, operating profit margin, EBIT margin and return on sales (ROS) - is the ratio of operating…
- Cost-plus pricing Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the…
- Markup (business) Markup (or price spread) is the difference between the selling price of a good or service and its marginal cost. In economics, markups are the most direct…
- Operating leverage Operating leverage is a measure of how revenue growth translates into growth in operating income. It is a measure of leverage, and of how risky, or volatile…
- Net income In business and accounting, net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes, and…
- Customer lifetime value In marketing, customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is an estimation and prediction of the…
- Contribution margin Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the…