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.

If you have $100,000 in pretax profit, that's better than running in the red – but is it good enough? That's where the pretax margin calculation comes in by transforming the dollar amount into a ...

Your business can show a profit without being profitable. When you end a quarter with a profit, your company made more than you spent. However, that doesn't mean you're earning enough to survive for ...

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 ...

Ignore your financial statement, and you effectively ignore the health of your company. A good manager should be able to deftly use the gross margin to understand which areas of the company are ...

"We lose money on each transaction, but we make it up in volume." It’s an old joke, but when it comes to restaurant food cost, it reminds us that knowing the profit margin of each menu item is ...

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 ...

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 ...