Practical examples and industry-specific considerations help illustrate the application of these metrics. Gross profit measures a company's efficiency at generating a profit by subtracting only ...

Gross margin is a top line item in a company's income statement measuring profitability after production costs have been deducted. Gross margin is the amount of money left over after subtracting ...

Practical examples and industry-specific considerations help illustrate the application of these metrics. Gross profit measures a company's efficiency at generating a profit by subtracting only ...

Profit and earnings are synonymous terms used in financial analysis. Learn about their common uses and the measures typically associated with them.

Reviewed by Somer AndersonGross profit margin and operating profit margin are two metrics used to measure a company’s profitability. Gross profit margin includes the direct costs involved in ...

For example, if their gross profit figure doubled over the period of a year, most businesses would be pleased. However, this may not tell the full story: ...

You can find your COGS (cost of goods sold) here. Determine your income (for example, how much you were able to sell the goods for). Subtract the costs from the revenue to determine the gross profit.

For example, if their gross profit figure doubled over the period of a year, most businesses would be pleased. However, this may not tell the full story: ...

The break-even calculation for sales is: (Operating Expenses + Annual Debt Service)/Gross Profit Margin = Break-Even Sales Let's use ABC Clothing as an example and compute this company's break ...