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  2. Profit margin - Wikipedia

    en.wikipedia.org/wiki/Profit_margin

    Net profit margin is net profit divided by revenue. Net profit is calculated as revenue minus all expenses from total sales. Example. A company has $1,000,000 in revenue, $600,000 in COGS, $200,000 in operating expenses, and $50,000 in taxes. Net profit is $150,000, and net profit margin is (150,000 / 1,000,000) x 100 = 15%.

  3. Gross margin - Wikipedia

    en.wikipedia.org/wiki/Gross_margin

    It is important to specify which method is used when referring to a retailer's profit as a percentage. Some retailers use margins because profits are easily calculated from the total of sales. If margin is 30%, then 30% of the total of sales is the profit. If markup is 30%, the percentage of daily sales that are profit will not be the same ...

  4. Financial ratio - Wikipedia

    en.wikipedia.org/wiki/Financial_ratio

    A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers ...

  5. Contribution margin - Wikipedia

    en.wikipedia.org/wiki/Contribution_margin

    Thus Profit is the Contribution Margin times Number of Units, minus the Total Fixed Costs. The above formula is derived as follows: From the perspective of the matching principle, one breaks down the revenue from a given sale into a part to cover the Unit Variable Cost, and a part to offset against the Total Fixed Costs. Breaking down Total ...

  6. Total revenue - Wikipedia

    en.wikipedia.org/wiki/Total_revenue

    When price goes up, quantity will go down. Whether the total revenue will grow or drop depends on the original price and quantity and the slope of the demand curve. For example, total revenue will rise due to an increase in quantity if the percentage increase in quantity is larger than the percentage decrease in price.

  7. Net income - Wikipedia

    en.wikipedia.org/wiki/Net_income

    v. t. e. In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period. [1] [2]

  8. Operating margin - Wikipedia

    en.wikipedia.org/wiki/Operating_margin

    Operating margin. In business, operating margin —also known as operating income margin, operating profit margin, EBIT margin and return on sales ( ROS )—is the ratio of operating income ("operating profit" in the UK) to net sales, usually expressed in percent. Net profit measures the profitability of ventures after accounting for all costs.

  9. Profit maximization - Wikipedia

    en.wikipedia.org/wiki/Profit_maximization

    Here too the profit is not maximized and the firm has to lower its output level to maximize profits. In economics, profit maximization is the short run or long run process by which a firm may determine the price, input and output levels that will lead to the highest possible total profit (or just profit in short).