In business, the terms gross profit margin and net profit margin are often used interchangeably, but shouldn’t be as they both have different uses for business metrics.This guide’s main aim is to ...

Profit margin is the ratio of profit to sales, expressed as a percentage. Gross profit is sales minus cost of goods sold, and operating profit is gross profit minus operating costs and interest ...

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 ...

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 ...

Operating profit margin is a concise measure of how much your company actually earns at the end of the day. It is expressed as a percentage, showing what portion of your company's revenue actually ...

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 ...

I’ve mentioned before that your gross profit is your real revenue. It is your true top line. Revenue is vanity. It is what we like to brag about at cocktail parties. Gross profit is the economic ...

One of the most important financial concepts you will need to learn in running your new business is the computation of gross profit. And the tool that you use to maintain gross profit is markup. The ...

Profit is a key indicator of a company’s long-term viability and success. Understanding your small business’s profitability can help with cost-cutting, pricing, and investment decisions. Here’s ...

Companies need to generate profit to stay afloat. They do this by producing goods or services and selling them for more than it costs to produce them. This difference is the company’s gross profit: ...