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.

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 ...

Calculating profit as a percentage of sales is most often discussed as a simple profit margin. The margin differs on the gross and net figures but the calculation is widely used and standardized. The ...

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 ...

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

Ignore your financial statement, and you effectively ignore the health of your company. A good manager should be able to deftly use the gross margin to understand which areas of the company are ...

"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 ...

The Forex trading process has become quite popular in a money-making capitalist world. However, one should learn certain basics before getting into the action to seize such trading opportunities. By ...

Lost profit damages are calculated when a plaintiff’s business alleges that the defendant’s actions impaired its operations in some manner. Determining lost revenues is a critical component in ...

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 ...