💰 Gross Margin

What is a Gross Margin?

Gross margin is the difference between sales and the cost of goods sold, divided by revenue.

For example, if your store generates $10,000 in sales and the cost of goods sold is $6,000, your gross margin is ($10,000 - $6,000) / $10,000 = 40%.

Gross margin indicates how well a company is managing its production costs relative to its sales. A healthy gross margin is crucial for profitability and financial stability.