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 ...

Net profit is the money a business earns in a particular period from selling its products after paying all of its expenses. (While it's important to look at your small business's overall net profit ...

Profit is an essential component of any business operation. It indicates the business's financial success and allows owners to continue running their companies. Understanding how to calculate profit ...

In order to determine their profitability, businesses look at their total net income relative to their total sales, or gross revenue. This figure, expressed as a percentage, is also known as the ...

In managerial accounting, two types of margins are generally calculated. Gross margin, revenue less cost of goods sold, is used when preparing a traditional income statement. Contribution margin, ...

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, ...

A company's income statement shows how much money it brought in as revenue or sales, how much it spent on expenses, and how much profit or loss -- also called net income -- was generated for a given ...

In many cases, the difference between net sales and gross sales can be much more than an accounting detail. Let's take a look atApple and why net sales can be a relevant concept providing a lot of ...