Of every dollar of revenue — how much is left once only the direct cost of making the product is subtracted? 60% means: of $100 in revenue, $60 remains before salaries, research and advertising are paid.
Rule of thumb:
MoatLens tip: This figure is the earliest sign of whether a company can set its own prices. It sits at the very top of the income statement, which makes it harder to dress up than the profit at the bottom. Watch the trend across several years: a slowly eroding gross margin is often the first hint that competitors are catching up — long before it shows in profit.
In MoatLens this explanation sits right next to the number — one tap away. And you see the ten-year trend instead of a single value.
