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 ...

Earnings before interest and taxes (EBIT) indicate a company's profitability and are calculated as revenue minus expenses, excluding taxes and interest expenses.

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 ...

For individuals, your gross income is the total amount of earned income that you can find on your paycheque before any taxes and deductions are taken off. It considers all sources of income from your ...

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 ...