Calculating profit as a percentage of sales is most often discussed as a simple profit margin. The margin differs on the gross and net figures but the calculation is widely used and standardized. The ...

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.

Your business's income statement is a long string of pluses and minuses. You start with your sales revenue, subtract costs of goods sold to get gross profit, then subtract expenses to get net 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.

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 ...