Companies need to generate profit to stay afloat. They do this by producing goods or services and selling them for more than it costs to produce them. This difference is the company’s gross profit: ...

Inventory is an asset. Figuring its value is important when you're running financial metrics, just like knowing the value of your factory or the expense of administrative overhead. The gross profit ...

A retail merchandiser buys products at wholesale and sells them for retail. Because of competition, retailers often contend with razor thin profit margins that they must monitor with an eagle eye.

Profit Formula: Doing business is no easy task. From negotiating the right price to selling a product at the best possible value, every step is aimed at maximizing profit. Whether you are a seller or ...

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 ...

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 ...

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, ...

Gross Profit vs. Net Profit: What Is the Difference? Your email has been sent A business’s health is measured differently depending on which costs are considered. Gross profit paints a different ...

Gross profit margin measures profitability by dividing gross profit by revenue. A high gross profit margin indicates efficient cost management and pricing strategy. Comparing a company's margin with ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Profit margin conveys the relative ...

Gross profit calculates as revenue minus the cost of goods sold (COGS). Gross profit margin, a percentage, helps compare profitability across companies. High gross profit indicates a company's ...