For companies that sell more than one product, it is helpful to calculate how much each individual product contributes to the overall company's sales and profits. To do that, we calculate the margin ...

Operating profit margin is a concise measure of how much your company actually earns at the end of the day. It is expressed as a percentage, showing what portion of your company's revenue actually ...

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 ...

EBITDA margin is a financial metric used to assess a company’s profitability before accounting for interest, taxes, depreciation and amortization. This measure represents the percentage of revenue ...

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 ...

It's important to emphasize that you need to account for all revenue, including operating revenue and non-operating revenue, such as investment income. Similarly, be sure to account for all expenses, ...

Andrew Bloomenthal has 20+ years of editorial experience as a financial journalist and as a financial services marketing writer. David Kindness is a Certified Public Accountant (CPA) and an expert in ...

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 ...

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, ...