Fundamental Analysis of Stock using Python — Gross Profit Margin
Gross profit margin is a financial metric that measures the profitability of a company’s core business operations by analyzing the proportion of revenue that exceeds the cost of goods sold (COGS) or cost of revenue. It is a significant metric in stock analysis as it provides insights into a company’s ability to generate profit from its core business operations. It helps investors and analysts understand how efficiently a company manages its production costs and pricing strategies.
In this article, we are going to use Python to perform fundamental analysis of a target stock by evaluating its gross profit margin.
Disclaimer: The writing of this article is only aimed at demonstrating the steps to estimate gross profit margin of a stock in Python. It doesn’t serve any purpose of promoting any stock or giving any specific investment advice.
Prerequisite Python Packages
- Pandas — https://pandas.pydata.org/
- Plotly — https://plotly.com/python/
Github
The original full source code presented in this article is available on my GitHub Repo. Feel free to download it (GrossProfitMargin.ipynb) if you wish to use it to follow my article.
