What is Gross Profit Margin?
Gross margin shows the percentage of revenue remaining after deducting the direct cost of producing goods or services, the first measure of pricing power.
Formula
How to Interpret
Higher gross margins indicate stronger pricing power and competitive position. Expanding margins over time are a positive signal.
Typical Ranges
US sector benchmarks: Software/SaaS 70–85%, Pharma/Biotech 60–80%, Consumer Staples 30–45%, Industrials 25–35%, Energy/Materials 20–35%. Or international markets like India: IT/Software 60–80%, FMCG 40–60%, Manufacturing 20–40%.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Gross Profit Margin.