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.

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 ...

For companies that sell more than one product, it is helpful to calculate how much each individual product contributes to the overall company's sales and profits. To do that, we calculate the margin ...

The sales margin is a vital metric used to reveal how profitable each item sold is to your business. You can calculate the sales margin for an individual sale, a group of sales or all transactions ...

Gross profit margin is a common measure of how well a business is doing. It is defined as the proportion of sales revenue a business earns after deducting the costs of production or sales, such as raw ...

Total margin ratio is found by dividing net income by total revenue, then multiplying by 100. This ratio aids investors in assessing a company's profitability from its total revenues. Using this ratio ...

When you run a company, it’s obviously important to understand how profitable the business is. Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds ...

When you run a company, it’s obviously important to understand how profitable the business is. Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds ...