Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Gross margin constitutes the percent of sales that is applied to profit. As an example, if you had a 50 percent gross margin, half of the sale is profit; the other half covers the original cost of the ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

Return on sales effectively measures how well a company converts core business operations into revenue. It compares the operating profit section of an income statement to the top line revenue that ...