IBM&#x27;s 2014 revenue was $93Bn. IBM&#x27;s 2014 costs was $46Bn. Therefore their gross profit was $46Bn (after rounding).<p>This results in a gross margin of 46&#x2F;93 = 51%.<p>If I looked through the NYSE I&#x27;d find no shortage of companies with a gross margin around 50%.<p>A gross margin figure of 50% alone is really nothing to be mind-blown about.<p>(To be clear, I&#x27;m most certainly not defending this company. Just saying that it would be wrong to be horrified with a 50% gross margin.)