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.

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 ...

Profit margin conveys the relative profitability of a firm or business activity by accounting for the costs involved in producing and selling goods. Margins can be computed from gross profit, ...

Gross profit margin is a ratio that measures the percentage of revenue left after subtracting production costs. By indicating the profitability of a company's core business operations, gross profit ...

Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...

Net profit margin is a key financial metric that measures the percentage of revenue left as profit after all expenses are deducted. Investors and businesses can use the net profit margin to assess a ...

The secret to making money from rental investments is knowing how profitable a possible investment property is and how much ...