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Aswath Damodaran, NYU Stern — Margins by Sector
Aswath Damodaran, NYU Stern — Margins by Sector is a tier 1 source on AskedWell — Peer-reviewed / governmental / scientific. Highest institutional trust. It's cited in 3 cooking, fermentation, and baking answers. Click any answer below to read the cited claim in context.
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what is… · business
What is gross margin?
Gross margin is revenue minus cost of goods sold (COGS), expressed as a percentage of revenue. It measures how much of each sales dollar survives the direct cost of producing or delivering the product. SaaS targets 70–85%; gross margin sets the ceiling on LTV, CAC payback, and the Rule of 40.
Why we cite it here: Canonical gross/operating/net margin data by industry
what is… · business
What is net margin?
Net margin (net profit margin) is net profit divided by revenue, as a percentage — what remains after ALL costs: COGS, operating expenses, interest, and tax. It is the true bottom-line profitability. Net margin is always less than or equal to gross margin, because it subtracts everything below the gross line.
Why we cite it here: Canonical net/operating/gross margin data by industry
what is the difference between… · business
What is the difference between gross margin and net margin?
Gross margin is profit after only direct costs (COGS), as a percentage of revenue. Net margin is profit after ALL costs — COGS plus operating expenses, interest, and tax. Gross margin measures product/delivery efficiency; net margin measures whole-business profitability. Net margin is always ≤ gross margin; the gap is everything below the gross line.
Why we cite it here: Canonical gross + operating + net margin data by industry
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