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.

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 ...

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 ...

Gross Profit vs. Net Profit: What Is the Difference? Your email has been sent A business’s health is measured differently depending on which costs are considered. Gross profit paints a different ...

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 ...

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, ...

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 ...