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.

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 ...

Businesses exist to produce goods or services at a profit. A variety of financial ratios can help evaluate how well a business is performing financially. The gross profit margin is one of the most ...

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 ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

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 ...

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 ...

Gross profit margin is one of the most crucial barometers of your company’s financial health and competitiveness within its industry—specifically, it helps you evaluate your production efficiency ...

In business accounting, standard margin and gross margin are two key indicators of a company's economic health. The key difference is that one measures the big-picture outlook in terms of how much ...