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.

Discover how to calculate contribution margin, a key profitability metric, by subtracting variable costs from sales revenue.

An OverviewA profit margin is a percentage that expresses the amount a company earns per dollar of sales. If a company makes more money per sale, it has a higher profit margin.Gross profit margin and ...