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.

A periodic inventory system uses a manual inventory count at the end of the year. This amount, labeled ending inventory, becomes the beginning inventory for the next year. Purchases of new inventory ...

Gross profit and gross margin show the profitability of a company when comparing revenue to the costs involved in production. Both metrics are derived from a company's income statement and share ...

Gross margin, often referred to as gross profit margin, is a key financial metric used to evaluate a company’s profitability and operational efficiency. It’s calculated by deducting the total cost of ...

Small business owners often spend copious amounts of time reviewing their company's profit and income. Business owners pay close attention to this information because it relates to how well their ...

Profit is an essential component of any business operation. It indicates the business's financial success and allows owners to continue running their companies. Understanding how to calculate profit ...

Gross profit is one of the most important measures of profitability in corporate finance. Gross profit is total revenue minus the cost of goods sold (COGS). Because this metric only takes into account ...

Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies. MoMo Productions / ...

Profit margin is a key financial metric that reveals the percentage of profit a business earns from its total revenue. It showcases how much money is left over after all expenses are deducted from the ...