GM% — Gross Margin Percentage
In job titles, GM means General Manager. On this page, GM means gross margin.
Definition: Revenue minus cost of goods sold, expressed as a percentage of revenue. GM% is the ceiling on every other margin in the business — if it is broken, no amount of operating discipline saves you.
Example
The product line had great revenue growth and 12% GM — which is to say, no business.
When you'll hear it
GM% shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to gross margin percentage — and they expect the room to already know what that means.
FAQs
What does GM% stand for?
GM% stands for Gross Margin Percentage.
What does GM% mean in business and finance?
Revenue minus cost of goods sold, expressed as a percentage of revenue. GM% is the ceiling on every other margin in the business — if it is broken, no amount of operating discipline saves you.
Where will I hear GM% used at work?
GM% comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for gross margin percentage, so people assume you already know the term.
Related terms
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