Gross margin: the meaning
What remains of revenue after purchases, materials and third-party services. It pays for staff and everything else.
Because abridged and micro formats do not show revenue, gross margin is the best comparable figure for the activity of small companies.
How to read it
The higher, the more room. Look at the trend above all: a falling gross margin shows up in profit later.
On Nummo you find this figure in the Figures tab of every company that filed annual accounts, over the years. In the tables, a small card gives this explanation in short.
How to calculate it
item 9900 (or 70 + 71 + 72 + 74 − 60 − 61)
The item numbers follow the official format of Belgian annual accounts, which builds on the European Accounting Directive.
More: Calculate gross margin: formula and example →
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