what is a good gross margin 
the gross margin varies by industry service based industries tend to have higher gross margins and gross profit margins because they don t have large amounts of cogs the gross margin for manufacturing companies will be lower because they have larger cogs 3the bottom linedifferent metrics can be used to measure a company s profitability the gross margin is just one of these figures gross margin may also be called gross profit margin it looks at a company s gross profit compared to its revenue or sales and is expressed as a percentage this figure can help companies understand whether there are any inefficiencies and if cuts are required to address them and increase profits the gross margin is also a way for investors to determine whether a company is a good investment 