Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

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, ...

Profit margin is one of the simplest and most widely used financial ratios in corporate finance. A company’s profit is calculated at three levels on its income statement, each with corresponding ...