If you divide **revenue by COGS** (Cost of Goods Sold), you get the **Gross Margin Ratio** (also known as the **Gross Profit Margin**). The formula is: $ \text{Gross Margin Ratio} = \frac{\text{Revenue}}{\text{COGS}} $ This metric indicates how efficiently a company produces its goods or services in relation to its direct production costs. A higher gross margin ratio suggests that the company retains more profit from each dollar of revenue after covering the costs directly associated with production.