Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Profit margin is a key financial metric that reveals the percentage of profit a business earns from its total revenue. It showcases how much money is left over after all expenses are deducted from the ...

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 ...

The net profit margin is a ratio that states how much remains as net profit after all expenses are subtracted from revenue. Shareholders, investors and other stakeholders want to know the net 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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...