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 margin constitutes the percent of sales that is applied to profit. As an example, if you had a 50 percent gross margin, half of the sale is profit; the other half covers the original cost of the ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

One of the most crucial aspects to keep track in your business is the profit margin formula. Not only is it an essential measure of your business's financial viability, but it's also a crucial factor ...

Formulas are powerful tools for performing calculations and analyzing data in Excel. In this beginner’s guide, you’ll learn how to use formulas and explore some popular built-in functions. One of the ...

Have you ever stared at a sprawling Excel spreadsheet, wondering how to make sense of the chaos? For many, Excel formulas feel like a secret language, powerful yet elusive. But here’s the truth: ...

To run a company successfully, you need to know everything about your business, including its financials. One of the most critical financial metrics to grasp is the contribution margin, which can help ...

You must always measure your profit margins for your small business. You can do this in different ways, and the method you choose can tell you what expenses need to be included in your prices. Gross ...