Gross profit margin is a common ratio in financial statement analysis. Management can use gross profit margin internally as an aspect of their pricing structure or externally to compare their company ...

Gross margin measures the percentage of revenue after direct costs are subtracted. Calculating gross margin involves subtracting COGS from revenue and dividing by total revenue. High gross margin ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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, ...

While "gross receipts" and "gross profit" may sound similar, they are two very different accounting terms used to record and analyze revenue made by a business. Here's everything you should know about ...

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 ...

Forbes contributors publish independent expert analyses and insights. Your home for independent, unbiased financial education on the web. When investors want to see how a company is performing, ...

Most entrepreneurs start organizations because they are passionate about the primary work of the business — which usually isn’t accounting. This means that most entrepreneurs aren’t completely ...