One of the most essential aspects of launching and operating a business is selling enough goods or services to pay for the company's costs. If a company can't earn enough to cover its costs, it loses ...

The profit margin ratio measures the portion of every dollar that you earn that you keep as profit. The profit margin ratio is reported in the form X:1, where X is the profit per dollar. For example, ...

Profitability is one of the most critical indicators of a business’s financial health. It not only reveals how much revenue you’re bringing in, but how efficiently you’re converting that income into ...

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 ...

In accounting and financial analysis, there are often times multiple ways to describe similar concepts. Each approach, while derived from the same fundamental, provides the analyst with a different ...

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 ...