Definition

Gross margin

The share of each revenue dollar left after the direct cost of producing what was sold. It is the first read on pricing power and production efficiency, and the starting point of every margin analysis.

Formula

Gross margin = Gross profit ÷ Revenue = (Revenue − Cost of revenue) ÷ Revenue

Drivers — what actually moves it

Price: higher realized selling prices lift margin directly, holding cost constant.
Cost: input, manufacturing, and delivery cost per unit — the denominator of efficiency.
Volume: scale spreads fixed production costs over more units (operating leverage in COGS).
Mix: shifting sales toward higher-margin products or services moves the blended margin.

Where to find it in the filing

Income statement (Consolidated Statements of Operations). 10-K Item 8 — revenue and cost of revenue are the top two lines; some filers also state gross profit.

XBRL concepts Echelon grounds to: GrossProfit · Revenues · RevenueFromContractWithCustomerExcludingAssessedTax · CostOfRevenue · CostOfGoodsAndServicesSold

Sector caveats — where this breaks

Banks and insurers report no cost of revenue or gross profit — their income statement starts from interest and premium income, so gross margin is not meaningful and Echelon does not compute it.
Product/services mix shifts (e.g. hardware vs services) can move the blended margin with no change in either segment.

Drill it in a live lesson Operating margin Net margin

Companies filing gross margin

The same metric on a real filer, computed from the filing and cited to the accession.

NVIDIA gross margin Adobe gross margin Analog Devices gross margin Autodesk gross margin

Drill gross margin on another filer

Graded exercises that use this metric — each one against a different company's own filed figures.

NVIDIA's gross margin: the transfer test Adobe's gross margin Analog Devices' gross margin Autodesk's gross margin Applied Materials' gross margin AMD's gross margin

Educational use only — not investment advice. Figures come from public SEC filings; Echelon teaches you to analyze data, it never recommends buying or selling any security.