Gross margin and net margin
Gross margin is what remains of each euro of sales after subtracting the direct cost of producing or buying what was sold; net margin is what is left at the end, once every expense, interest charge and tax has been deducted. The gap between them reveals a business's cost structure: a high gross margin that turns into a thin net margin gives away a company carrying heavy overheads, heavy debt, or both.
Formula
Margen bruto = (ventas − coste de ventas) ÷ ventas See also
See it on real data
Celsmar computes this from the accounts companies file with their regulator, and shows which line every figure comes from. Free to start, no card.
Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.