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.

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 ...

Calculating the total cost of ownership (TCO) involves comparing the overall cost of a vehicle or fleet, like maintenance, against the remaining positive value of the vehicle or fleet in question. As ...

Two measures used for understanding a company's financial health are EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income. While both help gauge how well a ...

Operating expenses are costs tied to a company’s day-to-day operations. Operating expenses are costs tied to the normal operations of a company. They include the day-to-day expenses of a company’s ...

Businesses are primarily successful based on how much money they make or their revenue. But while anyone can roughly grasp revenue, what it means and why it’s essential, revenue as a business figure ...

“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...