the Gross margin, gross profit margin, also known as gross profit margin Gross profit The margin is an important profitability indicator. It indicates in per cent how much of the sales revenue remains as profit after deducting the direct costs for the products sold (cost of goods sold or production costs). The formula is as follows: (Gross profit / sales revenue) * 100. A high gross margin indicates high profitability of the actual product, efficient production or strong pricing. It is a key indicator for the operating business as it measures the fundamental profitability of the business model before taking into account overheads such as administration, marketing or sales. A comparison of the gross margin over time or with competitors provides valuable insights into the company's performance. As one of the most important key performance indicators, the gross margin is prominently displayed in real-time dashboards such as the SAP Business One Cockpit offers. For detailed analyses at item or customer level, add-ons such as the Versino Financial Suite Extended analysis options.
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