Profit margin is one of the simplest and most widely used financial ratios in corporate finance. A company’s profit is ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Profit margin and markup are accounting ...

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 ...

Your business can show a profit without being profitable. When you end a quarter with a profit, your company made more than you spent. However, that doesn't mean you're earning enough to survive for ...

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 ...

Ignore your financial statement, and you effectively ignore the health of your company. A good manager should be able to deftly use the gross margin to understand which areas of the company are ...

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 ...

Q: My CPA has advised me to budget 5 percent of gross sales for advertising, but this seems like a pretty generalized guideline. Is there a better way to calculate an ad budget? A: You’re a very ...

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 ...