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Gross Margin and Operating Margin are both important financial metrics that businesses use to measure their profitability. Gross Margin is the amount of revenue that remains after deducting the cost of goods sold. Operating Margin, on the other hand, is the amount of profit a company makes after taking into account all operating expenses, including salaries, rent, and utilities. While Gross Margin is a good indicator of a company's ability to manage its costs, Operating Margin gives a more complete picture of the overall health of the business. By understanding the difference between Gross Margin versus Operating Margin, businesses can make more informed decisions about their finances and ensure long-term success.
