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 ...

Learn how to calculate the pretax profit margin, understand its uses in financial analysis, and explore examples for evaluating company efficiency before taxes.

Profit Formula: Doing business is no easy task. From negotiating the right price to selling a product at the best possible value, every step is aimed at maximizing profit. Whether you are a seller or ...

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, ...

Gross profit margin measures profitability by dividing gross profit by revenue. A high gross profit margin indicates efficient cost management and pricing strategy. Comparing a company's margin with ...

Net profit represents the amount a company retains after all costs, interest, depreciation, taxes, and other expenses are deducted. The net profit margin can be a valuable indicator of a company's ...

Net profit, also referred to as the bottom line, is one of the key tools to determine the financial health of an enterprise. The metric demonstrates a company’s ability to convert per-dollar sales ...