If you need a brief explanation of EBIT vs Gross Margin, here's what you should keep in mind. Gross margin represents the percentage difference between revenue and cost of goods sold. EBIT, short for earnings before interest and taxes, measures a company's profitability by considering all expenses except for interest and taxes. Lastly, operating margin refers to the percentage of revenue remaining after deducting operating expenses. Familiarizing yourself with these metrics is essential for evaluating the success of your business.