Gross margin constitutes the percent of sales that is applied to profit. As an example, if you had a 50 percent gross margin, half of the sale is profit; the other half covers the original cost of the ...

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, ...

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 ...

Have you ever stared at a spreadsheet, struggling to make sense of percentage calculations that just don’t seem to add up? Whether it’s a confusing formula, a misstep with zero values, or an ...

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 ...

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 ...

To run a company successfully, you need to know everything about your business, including its financials. One of the most critical financial metrics to grasp is the contribution margin, which can help ...