I guess it all depends on if they are reinvesting for growth. Also, it depends on how much man-power it actually takes to run their business.
Gross margin is revenue minus expenses directly relating to providing those good/services and usually scales with revenue.
If they are trying to grow really fast, then they might be spending a lot on other expenses to increase this growth. These expenses aren't directly related to the sales.
Gross margin is revenue minus expenses directly relating to providing those good/services and usually scales with revenue.
If they are trying to grow really fast, then they might be spending a lot on other expenses to increase this growth. These expenses aren't directly related to the sales.