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Talk:Gross margin

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Wrong revenue linked in the definition

[edit]

"Gross margin is the difference between revenue and cost of goods sold (COGS), divided by revenue." The link "revenue" leads to "net income", which is revenue minus costs of goods. This is not the correct, because "net income" is already revenue minus costs of goods. It should be a link to "revenue" (i.e. gross revenue).

On the sited source investopedia.com the definition of Gross Margin is not the same: Gross Margin=(( Net sales-COGS)/Net Sales))×100 So, which one is true? The other, maybe more common definition is this: Gross Margin = (gross profit/revenue)x100 ​