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  2. Profit margin - Wikipedia

    en.wikipedia.org/wiki/Profit_margin

    Profit margin in an economy reflects the profitability of any business and enables relative comparisons between small and large businesses. It is a standard measure to evaluate the potential and capacity of a business in generating profits. These margins help business determine their pricing strategies for goods and services.

  3. Gross margin - Wikipedia

    en.wikipedia.org/wiki/Gross_margin

    To verify a margin (%): Cost as % of sales = 100% − Margin % "When considering multiple products with different revenues and costs, we can calculate overall margin (%) on either of two bases: Total revenue and total costs for all products, or the dollar-weighted average of the percentage margins of the different products." [1]

  4. Earnings before interest, taxes, depreciation and amortization

    en.wikipedia.org/wiki/Earnings_before_interest...

    A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, [1] pronounced / ˈ iː b ɪ t d ɑː,-b ə-, ˈ ɛ-/ [2]) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base.

  5. Cost-plus pricing - Wikipedia

    en.wikipedia.org/wiki/Cost-plus_pricing

    Ultimately, the $54 markup price is the shop's margin of profit. Cost-plus pricing is common and there are many examples where the margin is transparent to buyers. [ 4 ] Costco reportedly created rules to limit product markups to 15% with an average markup of 11% across all products sold. [ 5 ]

  6. Contribution margin - Wikipedia

    en.wikipedia.org/wiki/Contribution_margin

    Contribution margin analysis is a measure of operating leverage; it measures how growth in sales translates to growth in profits. The contribution margin is computed by using a contribution income statement, a management accounting version of the income statement that has been reformatted to group together a business's fixed and variable costs.

  7. Earnings before interest and taxes - Wikipedia

    en.wikipedia.org/wiki/Earnings_before_interest...

    A professional investor contemplating a change to the capital structure of a firm (e.g., through a leveraged buyout) first evaluates a firm's fundamental earnings potential (reflected by earnings before interest, taxes, depreciation and amortization and EBIT), and then determines the optimal use of debt versus equity (equity value).

  8. Markup (business) - Wikipedia

    en.wikipedia.org/wiki/Markup_(business)

    Markup (or price spread) is the difference between the selling price of a good or service and its cost.It is often expressed as a percentage over the cost. A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.

  9. Margin (economics) - Wikipedia

    en.wikipedia.org/wiki/Margin_(economics)

    Within economics, margin is a concept used to describe the current level of consumption or production of a good or service. [1] Margin also encompasses various concepts within economics, denoted as marginal concepts , which are used to explain the specific change in the quantity of goods and services produced and consumed.