Gross margin

$$\frac{\text{Revenue}-\text{Cost of revenue}}{\text{Revenue}}$$

How effectively a company converts revenue into gross profit before operating expenses. A widening gross margin signals pricing power or input-cost discipline.

Direction: Higher better Category: profitability

Inputs (XBRL fallback chains):

• cost_of_revenue: CostOfRevenue -> CostOfGoodsAndServicesSold -> CostOfGoodsSold -> CostOfServices
• revenue: Revenues -> RevenueFromContractWithCustomerExcludingAssessedTax -> RevenueFromContractWithCustomerIncludingAssessedTax -> SalesRevenueNet -> SalesRevenueGoodsNet

Returns None when: Returns None when Revenue or COGS is missing, or when Revenue is zero.

Source code

Implementation: gross_margin in src/eqtytrk/metrics/ratios.py (or valuation.py for multiples).