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.

Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

Have you ever wondered how some individuals manage to live comfortably within their means while others struggle to make ends meet, despite having similar earnings? The answer often lies in effective ...

Net income reflects a company's profitability after subtracting all operating costs and expenses. Investors use net income to assess past and future performance and compare it against peers. A drop in ...

Gross income is a way of measuring the profit generated from sales alone, using just your total revenue minus the cost to you for the goods you sold. Net income, though, goes a few steps further by ...

Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...