Gross Margin versus Operating Margin is an important concept in the world of business. Gross Margin is the difference between revenue and the cost of goods sold, expressed as a percentage. On the other hand, Operating Margin is the difference between operating income and revenue, also expressed as a percentage. While Gross Margin focuses on product-level profitability, Operating Margin provides a more comprehensive view of the overall profitability of the business. In essence, Gross Margin is a measure of how efficiently a business is producing and selling its goods, while Operating Margin measures the effectiveness of the business as a whole. Understanding the difference between these two margins is crucial for any business owner who wants to assess the financial performance of their business.