MarketShots
Search0 day streak,0 XPlevel 1

Gross margin = (revenue − cost of goods sold) ÷ revenue × 100. It is shaped by pricing power, input costs and the mix of products sold, and varies widely between industries.

Example

Revenue of ₹1,200 crore and materials costing ₹660 crore give gross profit of ₹540 crore, a gross margin of 45%.

Learn more in these lessons

Spotted a mistake or something unclear? Report it by email. Here is how corrections work.