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.
Net income reflects a company's profitability after subtracting all operating costs and expenses. Investors use net income to assess past and future performance and compare it against peers. A drop in ...
Earnings before interest and taxes (EBIT) indicate a company's profitability and are calculated as revenue minus expenses, excluding taxes and interest expenses.