Gross margin percentage is a financial metric that shows the proportion of revenue that exceeds the cost of goods sold (COGS), expressed as a percentage. This metric helps assess a company's financial health by indicating how much money is left from sales after covering production costs. A higher gross margin percentage suggests effective pricing and cost management, which can be crucial for evaluating earnings management practices and identifying potential red flags in financial statements.
congrats on reading the definition of gross margin percentage. now let's actually learn it.