Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

Profit margin is a key financial metric that reveals the percentage of profit a business earns from its total revenue. It showcases how much money is left over after all expenses are deducted from the ...

There are four types of profit margin. Of these, net profit margin is used and referred to the most. Many, or all, of the products featured on this page are from our advertising partners who ...

Businesses are categorized for tax purposes, based on whether they operate for profit, or they as exist as a nonprofit entity. Within the latter grouping there are many types of nonprofits that are ...

Nonprofits use earnings to further missions, not individual gains; they enjoy federal tax exemptions. The IRS categorizes multiple nonprofit types under 501(c), with 501(c)(3) being the most common.

“Profit sharing” is a type of compensation paid to employees by companies. Payment of a profit sharing bonus to non-management employees typically takes place at the discretion of the company and does ...

Although a nonprofit organization reinvests any incoming profit into its services, research or local programs, it does require funding to operate on a daily basis. A nonprofit organization is similar ...

Understanding profit and profit margins is critical for business owners and corporate decision makers to reach their ultimate goal – earn the money they need to be successful and grow their company.

Profit margin conveys the relative profitability of a firm or business activity by accounting for the costs involved in producing and selling goods. Margins can be computed from gross profit, ...