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 ...

When you own a business, you need to understand how much money you make compared to how much you spend. That means you need to grasp profit margins. But while it’s crucial to know how to calculate ...

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 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 ...

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: ...

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 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 ...

There are multiple layers to a modern corporation's profitability. If you're an analyst or private equity investor considering a stake, you'll want multiple ways of looking at it. In addition to net ...

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 ...