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Sixth ElementSee Beyond the Numbers
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Gross margin

Share of each sales dollar left after direct production costs.

In simple terms: Money left after the direct costs of producing the product or service.

Calculated from reported figures

How it's calculated

Gross profit ÷ Revenue

Watch out for

Not reported by banks and some financial companies.

In general, a higher value is considered favourable — but always compare within the same industry, because what counts as “normal” varies widely.

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