Gross Margin

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This article discusses Gross Margins. For other commonly used margins, see Profit margins

Gross margin represents the proportion of each dollar of revenue that the company banks as gross profit. Gross margin is calculated by subtracting Cost of Goods Sold (COGS) from Net Sales (yielding Gross Profit), which is then divided by Net Sales. That is,

Uses: Gross margins demonstrate company earnings, taking into consideration the costs of sales, or production of its goods and services. That is, it is the proportion of gross revenue that remains after the company pays the direct costs of producing those revenues.

Example: A company earns $100M in revenue during the accounting period and spends $75M in direct costs to produce those revenues (cost of goods sold). The company's gross margin for the accounting period would be 25%, and thus it would retain $0.25 from each dollar of revenue generated. This money would then be used to pay off other, indirect costs of their business such as administrative costs, research and development, or investment expenses.

Gross Margin

Company	2004	2005	2006	2007	2008
Abbott Laboratories (ABT)	0.549%	0.524%	0.563%	0.559%	Add
Actel (ACTL)	57.4%	59%	60.5%	58.2%	Add
Advanced Analogic Technologies (AATI)	62.8%	60.5%	57.4%	53.5%	Add
Advanced Photonix (API)	Add	Add	38.9%	46.2%	38.2%
Alliance Fiber Optic Products (AFOP)	9.51%	21.9%	27.7%	31.5%	Add
Altera (ALTR)	69.6%	67.4%	66.7%	64.5%	Add
American Commercial Lines (ACLI)	Add	Add	Add	18.4%	0%
American Eagle Outfitters (AEO)	Add	Add	Add	Add	Add
ANADIGICS (ANAD)	Add	20.6%	30.2%	34.2%	Add
Apple (AAPL)	27%	29%	29%	34%	Add
Applied Micro Circuits (AMCC)	56.1%	51.4%	53.3%	52%	48.5%
Ascent Solar Technologies (ASTI)	Add	Add	Add	Add	Add
AstraZeneca (AZN)	0.758%	0.776%	0.79%	0.783%	Add
Atheros Communications (ATHR)	46%	44.1%	47.7%	49.7%	Add
Avanex (AVNX)	Add	(3%)	5%	18%	Add
AXT (AXTI)	Add	8.3%	28.7%	34.8%	Add
Barrett Business Services (BBSI)	18%	20%	21%	20%	Add
Bookham (BKHM)	(5.83%)	3.3%	17.9%	14.5%	Add
Bristol-Myers Squibb Company (BMY)	0.691%	0.691%	0.668%	0.679%	Add
Broadcom (BRCM)	Add	52.5%	51%	51.5%	Add
Canadian Solar (CSIQ)	33.2%	38.8%	18.1%	7.85%	Add
CECO Environmental (CECE)	Add	20.9%	17.8%	17.1%	Add
CEVA (CEVA)	86.3%	88.2%	87.6%	88.4%	Add
Cirrus Logic (CRUS)	51.3%	47.9%	54.3%	59.8%	56.8%
COMFORCE (CFS)	15%	15%	16%	16%	Add
COMSYS IT Partners (CITP)	24%	24%	24%	25%	Add
Conexant Systems (CNXT)	Add	32%	46%	44%	Add
Courier (CRRC)	32%	33%	33%	33%	Add
DayStar Technologies (DSTI)	Add	Add	Add	Add	Add
DexCom (DXCM)	Add	Add	Add	Add	Add
Diodes (DIOD)	Add	34.6%	33.2%	32.5%	Add
Donaldson Company (DCI)	Add	Add	32.8%	31.5%	32.5%
Eli Lilly and Company (LLY)	76.7%	76.3%	77.4%	77.2%	Add
EMCORE (EMKR)	Add	16.7%	18%	18%	Add
Energy Conversion Devices (ENER)	(3.51%)	56.4%	26.8%	21.7%	Add
ESS Technology (ESST)	14.7%	6.93%	2.81%	37.7%	Add
Euro Tech Holdings Company (CLWT)	Add	21%	24.1%	25.1%	Add
Exar (EXAR)	Add	Add	68%	68%	45%
Fairchild Semiconductor International (FCS)	28%	22.1%	30.1%	29.4%	Add
First Solar (FSLR)	(39.4%)	34.5%	40.2%	49.9%	Add

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