The share of revenue remaining after the cost of goods sold has been deducted.
Gross margin expresses gross profit as a percentage of revenue. First subtract the cost of goods sold from revenue, then divide the remaining gross profit by revenue and multiply by 100. Revenue of 100 and cost of goods sold of 60 produce gross profit of 40 and gross margin of 40%. Other operating costs still need to be considered when assessing overall profitability. The distinction between the amount and the percentage matters: gross profit states a monetary result, while gross margin shows its size relative to sales.
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Moët Hennessy’s Senior Business Controller role in London required working with Commercial Planning to monitor, analyse and challenge gross margin performance across brands. The employee examined volume, product mix, pricing, duties and cost of goods sold to explain movements in gross margin. Search local jobs for “gross margin”.
