The gross margin percentage is an excellent comparative ratio.  It’s used extensively in the accounting and financial world.  The formula is Gross Margin divided by Net Sales.  It’s very revealing.  For instance, it gives some insight into a company’s pricing strategy.  Companies with low margins have a small spread between their cost and their sales price.  They price their merchandise low in relation to its cost.  If they can be believed, convenience store operators sell fuel at low margin, making only a penny or so for each gallon sold.  Furniture stores and jewelry stores, on the other hand, are known for their high margins.  That’s why they can have 50% sales and still make a profit.