Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

Calculating profit as a percentage of sales is most often discussed as a simple profit margin. The margin differs on the gross and net figures but the calculation is widely used and standardized. The ...

Business managers, creditors and investors, among others, use analyses of profit margins to gauge the performance of a company. Financial ratios indicate not only how well a business is functioning ...

Some people assume that there is one monolithic standard for calculating “net profits” for all purposes. When they hear that a film company has reported a certain amount of net profits for one purpose ...

We are a team of writers, experimenters and researchers providing you with the best advice with zero bias or partiality. For startups, revenue and profit are the key performance indicators (KPIs) that ...

"We lose money on each transaction, but we make it up in volume." It’s an old joke, but when it comes to restaurant food cost, it reminds us that knowing the profit margin of each menu item is ...

Understanding profit and profit margins is critical for business owners and corporate decision makers to reach their ultimate goal – earn the money they need to be successful and grow their company.

Profit is a key indicator of a company’s long-term viability and success. Understanding your small business’s profitability can help with cost-cutting, pricing, and investment decisions. Here’s ...