All companies use certain financial indicators to look at their internal performance. Most of these indicators are fairly standard throughout the industry, and they allow a company to not only compare ...

Gross profit margin is a ratio that measures the percentage of revenue left after subtracting production costs. By indicating the profitability of a company's core business operations, gross profit ...

Gross profit margin is a common measure of how well a business is doing. It is defined as the proportion of sales revenue a business earns after deducting the costs of production or sales, such as raw ...

Profit is an essential component of any business operation. It indicates the business's financial success and allows owners to continue running their companies. Understanding how to calculate profit ...

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 ...

Andre McNeil, CFA, works as an associate with Goldman Sachs. He has 7+ years of experience in the financial services industry. Lea Uradu, J.D., is a Maryland state registered tax preparer, ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...