Gross margin

Gross margin

One of the 61 measures in Stock Scorer, under Quality — How much of the revenue is really kept — and what did it take to earn it?

How it is worked out

Gross profit ÷ revenue × 100

Gross profit is revenue minus the direct cost of delivering the product (cost of goods sold), before any overhead, marketing or research. It is what is left to pay for everything else, and it varies more by industry than any other measure here.

How to read it

the cost of delivering the product, before running the company. Varies more by industry than anything else here, so it compares software with software rather than with a contractor

Which figures it needs

Computed from 3 figures taken from the filing:

• gross_profit
• cost_of_revenue
• revenue

The XBRL tags behind it

These are the element names looked for in a filing, in order. The first one a company reports is the one used, and the company page names which it was — so any figure here can be checked against the filing it came from.

• GrossProfit
• CostOfRevenue
• CostOfGoodsAndServicesSold
• CostOfSales
• CostOfGoodsAndServiceExcludingDepreciationDepletionAndAmortization
• RevenueFromContractWithCustomerExcludingAssessedTax
• Revenues
• RevenueFromContractWithCustomerIncludingAssessedTax
• SalesRevenueNet
• SalesRevenueServicesNet
• RevenueFromContractsWithCustomers
• Revenue

Whether it counts

This measure is not counted by default. It can be added to Quality on the dashboard, and it then takes its share of that dimension.