Gross Margin
Repeat the gross margin build per segment to surface a losing segment hidden inside a healthy blended average.
- General ledger alone
- Compares with last year
- Key analysis in Planning & analytics
How the result is read
Same two captions as the income statement, cut by segment: revenue and cost of sales, margin, and the movement in basis points against last year. A negative margin is an impairment indicator handed to NRV, not a margin observation. Everything rests on the cost split — materials and direct labour carry a segment natively, absorbed overhead does not — so the allocation basis is stated and the unallocated remainder is its own line.
The worksheet, on the demo engagement
Gross Margin, as the application draws it for Harrow Precision Engineering Ltd, the fictional demo engagement — one row per segment per fiscal year.
One row per segment carrying a margin: the bar is this year, the tick last year. A bar far from its tick is a segment whose margin moved, whatever its absolute level; the overhead absorbed against no segment is on the grid rather than here.
- Median GM%
- 24.7%
- Hardware GM%
- 15.9%
- Spare parts GM%
- (15.0%)
Hardware margin volatile and collapses; spare parts sells below cost and is handed to NRV. Segment revenue and cost reconcile to the income statement, with absorbed overhead carrying no segment basis shown as its own line rather than spread across the four.
Result grid6 of 7 rows
| Segment | Revenue | COGS | Gross Profit | GM% | GM% PY |
|---|---|---|---|---|---|
| Software | 21,400 | 6,850 | 14,550 | 68.0% | 67.2% |
| Hardware | 27,700 | 23,180 | 4,520 | 16.3% | 28.4% |
| Services | 13,900 | 9,250 | 4,650 | 33.5% | 33.1% |
| Spare parts | 1,200 | 1,380 | (180) | (15.0%) | 4.2% |
| Total | 64,200 | 40,660 | 23,540 | 36.7% | 42.7% |
| Unallocated overhead | — | (980) | +980 |
In the application
Gross Margin is filed under Planning & analytics, index letter A. "Run all analyses" runs it with every other analysis the ledger can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under A, beside an index of the source files with their SHA-256 fingerprints.
Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required