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.

Gross profit margin, operating profit margin, and net profit margin are the three main margin analysis measures that are used to analyze the income statement activities of a firm. Each margin ...

Reviewed by Andy Smith Fact checked by David Rubin Key Takeaways Operating expenses are essential daily business costs, separate from production expenses.Reducing operating expenses can increase ...

Discover the synergy between income statements, balance sheets, and cash flow statements for a full analysis of a company's financial health and performance.

Editor’s Note: This post is focused on helping you understand profit and loss statements. This financial statement is used by most small business owners to help assess business profits and losses ...