Understanding profit and profit margins is critical for business owners and corporate decision makers to reach their ultimate goal – earn the money they need to be successful and grow their company.

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 ...

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 ...

Profit is an essential component of any business operation. It indicates the business's financial success and allows owners to continue running their companies. Understanding how to calculate profit ...

"We lose money on each transaction, but we make it up in volume." It’s an old joke, but when it comes to restaurant food cost, it reminds us that knowing the profit margin of each menu item is ...

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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

Doing business is no easy task. From negotiating the right price to selling a product at the best possible value, every step ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Investopedia / Paige McLaughlin The ...

Gross margin measures the percentage of revenue after direct costs are subtracted. Calculating gross margin involves subtracting COGS from revenue and dividing by total revenue. High gross margin ...

Profit is a key indicator of a company’s long-term viability and success. Understanding your small business’s profitability can help with cost-cutting, pricing, and investment decisions. Here’s ...