IBM's 2014 revenue was $93Bn. IBM's 2014 costs was $46Bn. Therefore their gross profit was $46Bn (after rounding). This results in a gross margin of 46/93 = 51

IBM's 2014 revenue was $93Bn. IBM's 2014 costs was $46Bn. Therefore their gross profit was $46Bn (after rounding). This results in a gross margin of 46/93 = 51%. If I looked through the NYSE I'd find no shortage of companies with a gross margin around 50%. A gross margin figure of 50% alone is really nothing to be mind-blown about. (To be clear, I'm most certainly not defending this company. Just saying that it would be wrong to be horrified with a 50% gross margin.)