All companies use certain financial indicators to look at their internal performance. Most of these indicators are fairly standard throughout the industry, and they allow a company to not only compare ...

Profit margin is one of the simplest and most widely used financial ratios in corporate finance. A company’s profit is ...

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 ...

In order to determine their profitability, businesses look at their total net income relative to their total sales, or gross revenue. This figure, expressed as a percentage, is also known as the ...

Investing in high-profit companies is advised as stocks are tied to future earnings. Profitability, measured by net income/revenue, aids in assessing and comparing firms. A declining profit margin, ...

For anyone who is interested in analyzing and assessing a company's performance, calculating percentages of total revenues -- or using the percentages that have been calculated for you -- can be very ...

Gross margin measures the percentage of revenue after direct costs are subtracted. Calculating gross margin involves subtracting COGS from revenue and dividing by total revenue. High gross margin ...

For companies that sell more than one product, it is helpful to calculate how much each individual product contributes to the overall company's sales and profits. To do that, we calculate the margin ...