IN PLAIN ENGLISH
What's left of each £1 of sales after the direct cost of what was sold.
WHERE YOU MEET IT
Gross Margin (TTM) in a holding's Growth Analysis section.
WATCH OUT FOR
A high gross margin can still end in a small profit once running costs are paid.
FULL DEFINITION
The difference between revenue and cost of goods sold (COGS), divided by revenue.
EXAMPLE
It costs £40 to make a £100 shoe. Gross profit is £60. Margin is 60%.
HOW IT'S CALCULATED
Gross Margin = (revenue − cost of goods sold) ÷ revenue, expressed as a percentage, over the trailing twelve months. Supplied by the market data provider.
EXPLAINED IN
Educational content only. It is not personal financial advice.