Markup is the difference between the cost of making or purchasing an item for sale and the price at which you sell it. In dollar terms, it represents your gross profit on the sale of a single unit of ...

Profit is a key indicator of a company’s long-term viability and success. Understanding your small business’s profitability can help with cost-cutting, pricing, and investment decisions. Here’s ...

Evaluating a corporation's financial performance involves more than counting the cash in the till at the end of the day. Calculating gross income is one step in the process of figuring a company's net ...

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: ...

Gross profit and net income are widely followed measures of a company’s profitability. They both gauge performance but in different ways by focusing on all or only a select few expenses. Gross profit ...

Gross margin, often referred to as gross profit margin, is a key financial metric used to evaluate a company’s profitability and operational efficiency. It’s calculated by deducting the total cost of ...

So many middle market companies focus on growth. That’s not a bad thing at all. But they also need to understand a term called gross margin. Investopedia defines gross margin as, “the number ...

Net profit margin is a key financial metric that measures the percentage of revenue left as profit after all expenses are deducted. Investors and businesses can use the net profit margin to assess a ...

To run a company successfully, you need to know everything about your business, including its financials. One of the most critical financial metrics to grasp is the contribution margin, which can help ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...