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.

Gross profit and gross margin show the profitability of a company when comparing revenue to the costs involved in production. Both metrics are derived from a company's income statement and share ...

Gross margin, often referred to as gross profit margin, is a key financial metric used to evaluate a company’s profitability and operational efficiency. It’s calculated by deducting the total cost of ...

Gross profit margin, operating profit margin, and net profit margin are the three main margin analysis measures that are used to analyze the income statement activities of a firm. Each margin ...

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 ...

So many middle market companies focus on growth. That’s not a bad thing at all. But they also need to understand a term called gross margin. Investopedia defines gross margin as, “the number ...

In my book Great CEOs Are Lazy, I discussed the elements of a great business model. One of the most critical elements of any good business model is margin–specifically gross margin. Lots and lots of ...

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 ...

Gross margin, a closely watched measure of profitability, came in at 17.2% for Q2, down from 18.0% a year ago but up from 16.3% in Q1, and from 16.3% in Q4. Gross profit, or revenue minus the cost of ...