Gross profit Margin (Gross Margin) of a company is its Revenue - Cost of Goods Sold. It is the amount that is left with the company after accounting or paying for its cost of Goods sold.

A company meets it's financial obligations, like it's operating expenses from the Gross margin and also saves a part of it for future use.

A high or rather consistent Gross Margin of a company indicates that the company is in a good financial health. Hence high gross margin is certainly a favorable indicator.