Next video:
Loading the player...

A business’s gross margin measures how much sales revenue the company retains after all of the direct costs associated with making a product or providing a service are accounted for.

  1. No results found.
Related Articles
  1. Small Business

    How Gross Margin Can Make or Break Your Startup

    Find out how your startup's gross margin can impact your business, including why a mediocre margin may spell disaster for a budding business.
  2. Investing

    A Look At Corporate Profit Margins

    Take a deeper look at a company's profitability with the help of profit margin ratios.
  3. Investing

    The Difference Between Gross and Net Profit Margin

    To calculate gross profit margin, subtract the cost of goods sold from a company’s revenue; then divide by revenue.
  4. Managing Wealth

    What’s a Good Profit Margin for a New Business?

    Surprisingly, the younger your company is, the better its numbers may look.
  5. Investing

    Basic Materials Stocks Making Big Moves on June 27, 2012

    The Nasdaq is trading up 0.7%, the S&P 500 has climbed 0.7% and the Dow has increased 0.6% on a good day for the market so far. The basic materials sector is the category of stocks that accounts ...
  6. Investing

    1 Sign of SolarCity's Success (SCTY)

    While SolarCity's (NASDAQ: SCTY) stock has been trending downward over the past 12 months, falling 12% over that period, don't be fooled: The underlying business is improving rapidly. The success ...
  7. Managing Wealth

    What's a Good Profit Margin for a Mature Business?

    How to determine if the amount you clear dovetails with the competition.
  8. Investing

    Biggest Services Sector Movers for June 22, 2012

    The market is currently up, with the Nasdaq up 0.5%, the S&P 500 rising 0.3% and the Dow climbing 0.5%. The Services sector (IYC) is up 0.2%, underperforming the market overall. The biggest movers ...
  9. Investing

    Analyzing Operating Margins

    Find out how to put this important component of equity analysis to work for you.
Hot Definitions
  1. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
  2. Nonfarm Payroll

    A statistic researched, recorded and reported by the U.S. Bureau of Labor Statistics intended to represent the total number ...
  3. Conflict Theory

    A theory propounded by Karl Marx that claims society is in a state of perpetual conflict due to competition for limited resources. ...
  4. Inflation-Linked Savings Bonds (I Bonds)

    U.S. government-issued debt securities similar to regular savings bonds, except they offer an investor inflationary protection, ...
  5. Peak Globalization

    Peak globalization is a theoretical point at which the trend towards more integrated world economies reverses or halts.
  6. Phishing

    A method of identity theft carried out through the creation of a website that seems to represent a legitimate company. The ...
Trading Center