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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. Financial ratio - Wikipedia

    en.wikipedia.org/wiki/Financial_ratio

    Operating margin, Operating Income Margin, Operating profit margin or Return on sales (ROS) [9] [10] ⁠ Operating Income / Net Sales ⁠ Operating income is the difference between operating revenues and operating expenses, but it is also sometimes used as a synonym for EBIT and operating profit. [ 11 ]

  4. Income statement - Wikipedia

    en.wikipedia.org/wiki/Income_statement

    Sankey Diagram - Income Statement (by Adrián Chiogna) An income statement or profit and loss account [1] (also referred to as a profit and loss statement (P&L), statement of profit or loss, revenue statement, statement of financial performance, earnings statement, statement of earnings, operating statement, or statement of operations) [2] is one of the financial statements of a company and ...

  5. Gross margin - Wikipedia

    en.wikipedia.org/wiki/Gross_margin

    Gross margin can be expressed as a percentage or in total financial terms. If the latter, it can be reported on a per-unit basis or on a per-period basis for a business. "Margin (on sales) is the difference between selling price and cost. This difference is typically expressed either as a percentage of selling price or on a per-unit basis.

  6. Return on equity - Wikipedia

    en.wikipedia.org/wiki/Return_on_equity

    The return on equity (ROE) is a measure of the profitability of a business in relation to its equity; [1] where: . ROE = ⁠ Net Income / Average Shareholders' Equity ⁠ [1] Thus, ROE is equal to a fiscal year's net income (after preferred stock dividends, before common stock dividends), divided by total equity (excluding preferred shares), expressed as a percentage.

  7. Net income - Wikipedia

    en.wikipedia.org/wiki/Net_income

    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.

  8. Operating margin - Wikipedia

    en.wikipedia.org/wiki/Operating_margin

    A good operating margin is needed for a company to be able to pay for its fixed costs, such as interest on debt. A higher operating margin means that the company has less financial risk. Operating margin can be considered total revenue from product sales less all costs before adjustment for taxes, dividends to shareholders, and interest on debt.

  9. Marginal profit - Wikipedia

    en.wikipedia.org/wiki/Marginal_profit

    Marginal profit at a particular output level (output being measured along the horizontal axis) is the vertical difference between marginal revenue (green) and marginal cost (blue).