Re: Revenue is ego, it doesn't mean anything
Their gross margin is 26% though, which is huge!
you probably haven't done a LOT of financial analysis and reporting for the top-level executive suits, have you?
When it comes to cost accounting and analysis, there are those factors (generally called called "burden") that are basically fudge factors applied to adjust estimated costs for specific product lines in order to determine what it REALLY costs as best as possible without getting down to the nit in every analysis.
"Gross Margin" generally takes some (but not all) of this into account. As a general rule, the gross margin for a product line is used to determine "which products are profitable" so they know what to can, what to cost reduce, and what to promote like hell. That sort of thing. But it's "gross margin" and STILL does not factor in ALL of the costs. (Obviously that comes later with the 'bottom line').
Not unexpectedly the costs of sales, marketing, "ivory tower", taxes, loan interest, dividends, and other such things take a HUGE bite. That's where all the margin disappears to, as a general rule.
So 26% gross margin in a financial report might simply be fudged up or down to look better than it is, or may depend heavily on how they do their overall cost accounting at the end.
/me takes off accountant hat and tosses it back into the corner - stupid stinky hat