Gross margin is the percentage of money a company keeps from its sales after covering the direct costs of producing its goods or services. It shows how efficiently a business turns revenue into ...

We’ll take a deeper dive into the net profit margin formula, including both hypothetical and real examples later in this article. Net profit margin is a true measure of a business’s profit ...

You pay $5,000 in cash and borrow — buy on margin — the other $5,000. Now imagine that your investment grows by 25% to $12,500. In this example, your actual return on investment would be 50% ...

Operating margin is a profitability ratio that measures a company’s operating efficiency after cost of goods sold and operating expenses have been deducted from revenue. Operating income is ...

Gross margin is a top line item in a company's income statement measuring profitability after production costs have been deducted. Gross margin is the amount of money left over after subtracting ...