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Gross Margin

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Description

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage.

Gross margin is the percentage difference between revenue and the cost of goods sold (COGS), providing insight into a company’s production efficiency and pricing strategy. A higher gross margin indicates that a company can cover its operating expenses more comfortably, contributing to overall profitability. This metric is vital for comparing efficiency across companies or industries.

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