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 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 ...

There are four types of profit margin. Of these, net profit margin is used and referred to the most. Many, or all, of the products featured on this page are from our advertising partners who ...

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 margin shows how much profit a company keeps from each revenue dollar. Higher gross profit margins indicate more efficient cost management. Comparing margins with competitors assesses ...

Discover how to calculate contribution margin, a key profitability metric, by subtracting variable costs from sales revenue. Learn how it impacts business decisions.