Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

Gross profit margin is a ratio that measures the percentage of revenue left after subtracting production costs. By indicating the profitability of a company's core business operations, gross profit ...

Do you follow generally accepted accounting principles? GAAP tells the story of your business this way: Sales minus expenses equals profit. However, Mike Michalowicz's book Profit First argues that we ...

Discover the importance of segment margin, how it's calculated, and its impact on business performance. Learn to identify valuable segments and optimize resources.

Bluevine reports 24 essential financial KPIs for small businesses to track, focusing on profitability, liquidity, and ...

Learn about underlying profit, a key metric many companies use to illustrate true profitability by excluding one-time charges, with examples and pros and cons.