Gross profit margin is a ratio that measures the percentage of revenue left after subtracting production costs. By indicating the profitability of a company's core business operations, gross profit ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Eric's career includes extensive work in ...

In my book Great CEOs Are Lazy, I discussed the elements of a great business model. One of the most critical elements of any good business model is margin–specifically gross margin. Lots and lots of ...

A company's operating margin is the profit it makes on a dollar of sales after accounting for the direct costs involved in earning the revenue.

A. The short answer to your question is “yes!” However, a bit of explanation may be helpful. Gross margin is defined as revenue, minus the cost of goods sold (COGS) or the cost of services provided.