Ask a Fool: What is a Gross Margin?

Isaac Pino
Isaac Pino, CPA
Sep 24, 2012 at 12:00AM

In the spirit of better investing and in celebration of the first annual Worldwide Invest Better Day (WWIBD) coming up on September 25, Motley Fool analysts will be answering user- and reader-submitted questions leading up to the big event. "Ask a Fool" anything, and we'll do our best to help you invest better.

Gross margin is the amount of profit you have, for each $1 in sales, after deducting all costs directly related to the sale. In the following video, analyst Isaac Pino goes over everything that investors need to know about gross margin, including how this metric can provide a useful means for comparison. For example, Apple (NASDAQ:AAPL) is a company with several different product lines, and looking at gross margin can be a good way of evaluating how they're doing across the board. Watch the video below to learn more.


Click the green button below to join the thousands of people celebrating Worldwide Invest Better Day on September 25!