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.

A periodic inventory system uses a manual inventory count at the end of the year. This amount, labeled ending inventory, becomes the beginning inventory for the next year. Purchases of new inventory ...

When calculating a declining sales figure spanning multiple years, you need to calculate two percentages. The straight-line method calculates your overall decline, but this doesn't paint the entire ...

A Treasury bill, or T-bill, is a short-term government debt security with a maturity of less than one year. Unlike many other debt securities that make regular interest payments to investors, Treasury ...

Most companies sell their products on credit, for the convenience of the buyers and to increase their own sales volume. The term bad debt refers to outstanding debt that a company considers to be ...