Gross Margin score

The Gross Margin score is an indicator that tells you what the growth and stability of the Gross Margin (Marx) has been over the past eight years.

Gross Margin (Marx) is the best company quality ratio we have ever tested. See separate definition of the Gross Margin (Marx).

How to use the ratio

Available as a screening ratio: No

Available as an output column ratio: Yes

The ratio can only be selected as a column and can be found under Quality ratios and indicators.

 

The lower the better

The Gross Margin score is a number between 1 and 100 (1 is good 100 is bad) that is calculated based on the Gross Margin (Marx) growth and stability over the past 8 years.

The more stable the Gross Margin (Marx) and the higher its growth has been over the past 8 years the lower the Gross Margin Score will be.

To select the best companies sort the column from low to high. Or you can also add a filter in the column to only show the lowest companies.

 

More information

The Gross Margin (Marx) is the best company quality ratio we have ever tested. You can read more about the test here: Have you been using the wrong quality ratio? The Gross Income ratio.

 

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