Tom Werner / Getty Images 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 ...

Understanding the financial health of a business often begins with analyzing its profit margins. Two metrics normally used in ...

Gross profit margin shows how much profit a company keeps from each revenue dollar. Higher gross profit margins indicate more efficient cost management. Comparing margins with competitors assesses ...

Net profit margin and gross profit margin both measure profitability but focus on different aspects of a company's finances. Gross profit margin only considers revenue and the cost of goods sold ...

The term is also known as gross profit or gross income. Gross margin is mainly applied to companies involved in the manufacturing of goods, such as cars, electronics, and food. Banks, for example ...

Operating income measures a company’s efficiency and performance and is the profit after operating expenses have been subtracted from gross profit. Before delving further into operating income ...

Cost of goods includes all the costs related to the sale of products in inventory. Gross profit margin is the difference between revenue and cost of goods. Gross profit margin can be expressed in ...

Here are the variables needed to compute a break-even sales analysis: Gross profit margin Operating expenses (less depreciation) Annual debt service (total monthly debt payments for the year ...