Learn what net income means for businesses and individuals, how it's calculated, and why it's a crucial financial metric.

What Is a Profit Margin? A profit margin is a profitability measure. It determines how much profit a company earns relative to its revenue. There are several types of profit margins, including ...

For example, net earnings, or gross profit. The term earnings is most commonly used when discussing the bottom line of a company’s income statement. The term profit is commonly associated with ...

There are multiple layers to a modern corporation's profitability. If you're an analyst or private equity investor considering a stake, you'll want multiple ways of looking at it. In addition to net ...

Reviewed by Khadija Khartit Fact checked by Yarilet Perez Gross Margin vs. Operating Margin: An Overview Gross margin and ...

Gross income is a fundamental financial measure that holds significance for both businesses and individuals. Whether analyzing company profitability or assessing an individual’s financial health, ...

Net profit – this is calculated by taking the expenses away from the gross profit. This is the final part of the profit and loss account. If the net profit figure is negative, the business has ...

The key information shown on an income statement includes information about revenue, cost of sales, and any other expenses, along with gross and net profit.