Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Kimberly Overcast is an award-winning writer and fact-checker. She has ghostwritten political, health, and Christian nonfiction books for several authors, including several New York Times bestsellers.

A. The short answer to your question is “yes!” However, a bit of explanation may be helpful. Gross margin is defined as revenue, minus the cost of goods sold (COGS) or the cost of services provided.

When you run a company, it’s obviously important to understand how profitable the business is. Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds ...