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 ...

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, ...

Your income statement shows you how much money you received during the year and how much money you paid out in expenses during the year. Before you get to your net profit, you need to include your ...

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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. David Kindness is a Certified Public ...

Calculating how far a number has declined from one year to the next is pretty easy if you are only considering a one year period. You subtract the current year's number from last year's number, then ...

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 ...

There are many situations in investing in which it makes sense to look at how two different numbers related to each other over time. Whether you're talking about two stocks in the same industry, the ...