Gross Margin
The share of revenue left after the direct cost of making or buying what a company sells, shown as a percentage.
What it is
Gross margin measures how much of each sales dollar a company keeps after paying for the direct costs of its products or services, known as cost of goods sold (COGS). It captures pricing power and production efficiency before any overhead, marketing, interest, or taxes are counted. A higher gross margin means more money is left to cover everything else.
Why it matters
Gross margin is the first read on whether a business model is fundamentally profitable and how much pricing power it has. It varies hugely by industry, so it is most useful compared against the same company over time or against direct peers. A pitfall is that companies classify costs differently (some put shipping or depreciation in COGS, others below it), which can make raw cross-company comparisons misleading.
How it's calculated
Subtract cost of goods sold from revenue to get gross profit, then divide that by revenue and express it as a percentage.
How Quintarthai uses it
Gross margin is shown in the profitability ratios and across the 10-year income statement on a company's deep-analysis page.