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 ...

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 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 ...

The net profit margin is a ratio that states how much remains as net profit after all expenses are subtracted from revenue. Shareholders, investors and other stakeholders want to know the net profit ...

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 ...

The following information is a Web Extra from the pages of Top Producer. It corresponds with the article “Recipe for Success.” You can find the article in Top Producer’s January 2013 issue. What’s ...

Profit margin conveys the relative profitability of a firm or business activity by accounting for the costs involved in producing and selling goods. Margins can be computed from gross profit, ...

Understanding profit and profit margins is critical for business owners and corporate decision makers to reach their ultimate goal – earn the money they need to be successful and grow their company.