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 ...

The sales margin is a vital metric used to reveal how profitable each item sold is to your business. You can calculate the sales margin for an individual sale, a group of sales or all transactions ...

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 ...

When a company sells a product or offers a service, it needs to price it higher than it costs to produce it. That amount is the gross income a company earns from its sales. But it’s often simpler and ...

Profit margin is one of the simplest and most widely used financial ratios in corporate finance. A company’s profit is calculated at three levels on its income statement, each with corresponding ...

A. The short answer to your question is “yes!” However, a bit of explanation may be helpful. Gross margin is defined as revenue, minus the cost of goods sold (COGS) or the cost of services provided.

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...

In my book Great CEOs Are Lazy, I discussed the elements of a great business model. One of the most critical elements of any good business model is margin–specifically gross margin. Lots and lots of ...

QUESTION: I own a small business and have been told that I need to pay close attention to gross margin. What is your perspective? Should I focus on gross margin? ANSWER: The short answer to your ...

Operating profit margin is a concise measure of how much your company actually earns at the end of the day. It is expressed as a percentage, showing what portion of your company's revenue actually ...