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.

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 ...

Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

Some people assume that there is one monolithic standard for calculating “net profits” for all purposes. When they hear that a film company has reported a certain amount of net profits for one purpose ...

Earnings before interest and taxes (EBIT) indicate a company's profitability and are calculated as revenue minus expenses, excluding taxes and interest expenses.

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 ...

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, ...

Understanding the difference between revenue and profit is essential in understanding basic and complicated economics. Even if you don’t know exactly what these terms mean, you’ve heard the words in ...

Profit margin is one of the simplest and most widely used financial ratios in corporate finance. A company’s profit is calculated at three levels on its income statement, each with corresponding ...

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 ...