Definition
The difference between revenue and the cost of goods sold, expressed as a percentage. It indicates how efficiently a company is managing its production or service delivery costs.
Why it matters (in Poovi’s context)
Key metric for understanding profitability in sales, highlighting the importance of balancing low-margin loss leaders with high-margin products to ensure overall profitability.
Key properties or components
- Revenue - Cost of Goods Sold
- Expressed as a percentage
- Indicates profitability of products/services
Contradictions or debates
None.