Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

One of the most crucial aspects to keep track in your business is the profit margin formula. Not only is it an essential measure of your business's financial viability, but it's also a crucial factor ...

Discover how the working ratio reveals a company's ability to cover operating costs from revenue, learn the calculation method, and understand its limitations.

Look for high profitability ratios to identify companies efficiently turning revenue into profits. Analyze margin and return ratios to assess how well a company manages its costs and assets. Compare ...

Opinions expressed by Entrepreneur contributors are their own. Being an entrepreneur for more than 30 years has taught me how important it is to track data about my business. But, I didn’t always take ...

Financial matters need to be handled carefully for an organization to perform well. Your organization can use ratio analysis to evaluate its financial status and gauge its performance. Ratio analysis ...

The gross profit ratio is a measure of what percentage of your revenue remains after costs of goods sold are removed. Achieving a high gross profit margin is important because you ultimately need ...