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  • 📖Glossary
    • Marketing and Financial Glossary
      • Delivery Ratio
      • Gross Profit
      • Gross Margin
      • Deliveries
      • Margin Return on Marketing Investment (mROMI)
      • Cost Per Click (CPC)
      • Impressions
      • Marketing Investment Ratio (MIR)
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      • Return on Marketing Investment (ROMI)
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      • Cost of Goods Sold
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      • Sales Revenue
      • Return on Investment (ROI)
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  1. Glossary
  2. Marketing and Financial Glossary

Gross Margin

Gross margin is calculated by dividing gross profit by sales revenue. This indicator shows the percentage(margin) of your sales revenue that is gross profit.

Gross margin and gross profit are closely related: if you deduct cost of goods sold from sales revenue, you have gross profit. After that, if you divide gross profit by sales revenue, you have gross margin.

To maximize the insight you receive from this indicator, calculate it individually for each market segment. Use the findings to evaluate your company's market positioning.

Parameters

Calculation: grossMargin = grossProfit / salesRevenue

Example: grossMargin = 11 600 / 52 000 ≐ 0,223

Unit: Number

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Last updated 11 months ago

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