**Id:**`gross_margin`

**Type:**`fundamentals`

**Subtype:**`ratios`

**Units:**`percentage`

**Decimal Points:**`2`

**Currency Convertible:**`No`

**Tags:**`“gross margin”, “gross profit margin”, “gross profit percentage”, “sales margin”, “gross income ratio”`

Gross margin is a way to measure how much money a company keeps from its sales after paying for the direct costs of making or buying its products. It is calculated by subtracting the cost of goods sold (COGS) from the net sales, and then dividing the result by the net sales. It is expressed as a percentage of sales. The higher the gross margin, the more money a company has left to cover other expenses or debts. The formula for gross margin is:
Where:
- Net sales (IS001, is_sales_revenue_turnover) is the total amount of money a company makes from selling its products or services. It may include discounts or refunds given to customers.
- COGS (IS003, is_cogs) is the total amount of money a company spends on making or buying its products. It includes both labor and material costs.

`Gross margin = (Net sales - COGS) * 100 / Net sales`