Business managers, creditors and investors, among others, use analyses of profit margins to gauge the performance of a company. Financial ratios indicate not only how well a business is functioning ...
A company determines its gross profit by taking its sales revenue, and then subtracting the cost it paid to obtain the goods it sold. For example, if it cost a bookstore $7 to obtain a book from a ...
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, ...
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