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 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 ...

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 ever looked at your revenue graph and thought, “We’re growing, but it still feels fragile,” gross margin is usually the reason. You can be signing customers, shipping product, even raising ...

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 ...

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 ...