Gross Margin

Gross profit margin (also gross margin, gross profit rate) indicates the value added by sales and is helpful in pricing and marketing planning.

$$Gross\; profit\; margin \mmlToken{mo}[linebreak="auto"]{=} \frac{Net\; sales - COGS}{Net\; sales}$$

COGS (cost of goods sold; cost of sales) - the cost of goods or services sold.