The enterprise level ‘Gross Margin’ report provides a valuable summary of the variable costs and revenue for the mobs contained in the enterprise. Expenses in this report are limited to stock-related items such as animal health, off-farm grazing and shearing costs.

As with the farm level Gross Margin report, revenue includes sale of stock less purchases of stock. However, at the enterprise level, ‘internal’ sales and purchases are also included. This means that any transfers between the particular enterprise and other enterprises or other farms are also included as sales and purchases.

Doing this enables enterprises within the same farm to be compared with each other and this financial comparison may assist in decision making processes.

The bottom-line Gross Margin value is equal to revenue less expenditure and interest on capital.