Gross Margin Percentage Calculator Gross margin percentage
measures the relationship between net sales and cost of goods
sold. Working with your gross margin percentage Your gross
margin is a measure of sales profitability and represents what
portion of sales revenue is available to cover the other costs
of running your business and provide net profits. You can
compare your gross margin percentage with industry data to
measure how your company compares to competitors. Margins lower
than competitors may be the result of lower volume or higher
costs. By monitoring changes in your gross margin percentage
over time, you can better understand the financial dynamics of
your business and run it more effectively. Here is a worksheet
you can use to track changes in this and other important
measures.