(Revenue − cost of sales) ÷ revenue. Product profitability before operating expenses.
What this ratio is
Gross Margin (Gross Margin): (revenue − cost of sales) ÷ revenue, the profitability of the product before operating expenses.
How to read it
Product profitability before expenses. Software runs above 70%, retail below 30%, and a decline usually comes before a decline in net margin.
Common mistake
Cost classification differs between companies. A small gap may be accounting, not operations.
Where to see it on the platform
The fundamentals comparison page shows it for each company against the market median, under the “Profitability metrics” family, with five years of history and a trailing twelve-month window.
Questions about gross margin
What is gross margin?
(Revenue − cost of sales) ÷ revenue. Product profitability before operating expenses.
How does gross margin appear on the platform?
It appears as “cmp:gross_margin” (full term: Gross Margin), the name you see in the option chain or the order screen.
