Margin

Margin, in a business context, refers to the difference between the selling price of a product or service and its cost. It is a critical profitability metric that can be expressed as a dollar amount or, more commonly, as a percentage. Gross Margin focuses on the revenue remaining after deducting the Cost of Goods Sold (COGS), indicating the profitability of a company's core products or services before overhead. Net Margin, on the other hand, accounts for all expenses, including operating costs, interest, and taxes, providing a holistic view of a company's overall profitability.