Gross margin (bruttoavance)
Gross margin (bruttoavance) is gross profit relative to revenue, usually expressed as a percentage. Where gross profit is an amount in kroner, gross margin shows what share of each krone of sales remains once direct costs are paid.
The figures behind the term
Source: companydata.dk, CVR and annual reports, updated 16 October 2026
Gross margin is calculated as gross profit divided by revenue times 100. A shop selling for DKK 1,000,000 with cost of goods of DKK 600,000 has a gross profit of DKK 400,000 and a gross margin of 40 %. In everyday Danish, bruttoavance is sometimes used for the amount itself, but as a key figure it means the percentage.
Gross margin or gross profit?
Gross profit tells you how many kroner are available to cover wages, rent and depreciation. Gross margin tells you how efficiently the company turns sales into contribution, and it can be compared across companies of different sizes. Trading companies typically sit at 20 to 40 %, while consulting and software are often far higher.
Frequently asked questions
What is gross margin?
Gross profit measured against revenue and stated as a percentage. It shows how much of each sale is left once the direct costs are deducted.
What is the difference between gross margin and gross profit?
Gross profit is an amount in kroner. Gross margin is the same relationship as a percentage of revenue, so companies of different sizes can be compared.
Why can gross margin not be calculated for every company?
Because class B companies may omit revenue. Without revenue there is no denominator and the ratio cannot be calculated.
Related terms
Gross profit (bruttofortjeneste)
Gross profit (bruttofortjeneste) is revenue minus the direct costs of delivering goods or services (e.g. cost of goods sold). For most small Danish companies, gross profit is the top line of the published financial statements, because revenue may be omitted.
Revenue (omsætning)
Revenue (nettoomsætning) is a company's total income from sales of goods and services in the fiscal year, excluding VAT and net of discounts.
Profit margin (overskudsgrad)
The profit margin (overskudsgrad) shows how large a share of revenue ends up as operating profit. It is calculated as operating profit divided by net revenue, multiplied by 100.
Reporting class (regnskabsklasse)
The reporting class (A, B, C, or D) is the Danish Financial Statements Act's grouping of companies by size and type. The class determines the content requirements for the annual report, the higher the class, the more disclosure.