CGS, or cost of goods sold, measures the expense a company incurs in procuring the item to sell, and the sales revenue measures the money brought in by selling the product. From these two figures, you ...

The sales margin is a vital metric used to reveal how profitable each item sold is to your business. You can calculate the sales margin for an individual sale, a group of sales or all transactions ...

When a company sells a product or offers a service, it needs to price it higher than it costs to produce it. That amount is the gross income a company earns from its sales. But it’s often simpler and ...

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.

Gross margin, often referred to as gross profit margin, is a key financial metric used to evaluate a company’s profitability and operational efficiency. It’s calculated by deducting the total cost of ...

So many middle market companies focus on growth. That’s not a bad thing at all. But they also need to understand a term called gross margin. Investopedia defines gross margin as, “the number ...

Profit margin is one of the simplest and most widely used financial ratios in corporate finance. A company’s profit is calculated at three levels on its income statement, each with corresponding ...

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...

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 ...

I’ve mentioned before that your gross profit is your real revenue. It is your true top line. Revenue is vanity. It is what we like to brag about at cocktail parties. Gross profit is the economic ...