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.

Earnings before interest and taxes (EBIT) indicate a company's profitability and are calculated as revenue minus expenses, excluding taxes and interest expenses.

Profit margin conveys the relative profitability of a firm or business activity by accounting for the costs involved in producing and selling goods. Margins can be computed from gross profit, ...