A company's profit margin reveals how much of its earnings it gets to keep after it pays all of its expenses. It is a ratio of earnings to revenue. Companies with strong earnings report high profit ...

A company is regularly required to complete numerous different financial statements for a variety of reasons. Among the more common financial statements a company may need to prepare are a balance ...

Economic profit contrasts from net income by subtracting both usual costs and missed alternative profits. Short-term economic losses may lead to long-term gains if underlying business strategies ...

When you own a business, you need to understand how much money you make compared to how much you spend. That means you need to grasp profit margins. But while it’s crucial to know how to calculate ...

Net profit margin is a key financial metric that measures the percentage of revenue left as profit after all expenses are deducted. Investors and businesses can use the net profit margin to assess a ...

Trading the foreign exchange (forex) markets can be difficult at the best of times. Researching trades and exchange rates, planning the best execution, deciding on stop-loss and take-profit ...

At some point, you’ve probably heard the phrase, “It takes money to make money.” But if you’re not careful, it’s easy for expenses to spiral out of control — and you could end up making little to no ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Investopedia / Ryan Oakley Loss cost, also called pure premium, is the portion of an ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Deadweight loss occurs when taxes disrupt the balance of supply and demand. To find deadweight loss, assess the change in consumer and producer surplus post-tax. Minimize taxation impact by ...