In business, the terms gross profit margin and net profit margin are often used interchangeably, but shouldn’t be as they both have different uses for business metrics.This guide’s main aim is to ...

Interested in the working principle of operating profit and how the calculation is made? Operating profit is the resulting profit made by a company after deducting cost of goods sold and operating ...

We are a team of writers, experimenters and researchers providing you with the best advice with zero bias or partiality. For startups, revenue and profit are the key performance indicators (KPIs) that ...

Revenue is any money that a business makes from selling its goods and services, whereas costs are anything that a business pays for. Businesses need revenue to ensure that they can maintain their ...

The equation for working out gross profit: Revenue – Cost of sales = Gross profit Expenses (overheads) – these are the costs that do not change as production increases or decreases. This includes ...

Operating income, often referred to as operating profit or operating earnings, represents the financial gain a company generates from its core operations. It is a fundamental measure of how well a ...

For all types of investor, understanding key performance indicators is vital to assess a company’s health and profitability. One such metric, gross profit, plays a pivotal role in evaluating a ...