Gross profit margin, operating profit margin, and net profit margin are the three main margin analysis measures that are used to analyze the income statement activities of a firm. Each margin ...

Working from the top line items in the income statement, cost of goods sold is subtracted from revenue, and the difference is gross profit. All operating costs subtracted from gross profit lead to ...

Learn what net income means for businesses and individuals, how it's calculated, and why it's a crucial financial metric.

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society ...

Operating margin is a profitability ratio that measures a company’s operating efficiency after cost of goods sold and operating expenses have been deducted from revenue. Operating income is ...