Understanding profit and profit margins is critical for business owners and corporate decision makers to reach their ultimate goal – earn the money they need to be successful and grow their company.

Learn how to calculate the pretax profit margin, understand its uses in financial analysis, and explore examples for evaluating company efficiency before taxes.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

Calculating profit as a percentage of sales is most often discussed as a simple profit margin. The margin differs on the gross and net figures but the calculation is widely used and standardized. The ...

If you have $100,000 in pretax profit, that's better than running in the red – but is it good enough? That's where the pretax margin calculation comes in by transforming the dollar amount into a ...

"We lose money on each transaction, but we make it up in volume." It’s an old joke, but when it comes to restaurant food cost, it reminds us that knowing the profit margin of each menu item is ...

Editor's Note: This article originally appeared in the January edition of Bank Technology News Magazine. It's a truism among financial institutions that not all revenue is created equal: some revenue ...

Reno, Nevada, December 10th, 2025, FinanceWireTraceFuse, a leading provider of ecommerce review-intelligence solutions, ...

Profit is a key indicator of a company’s long-term viability and success. Understanding your small business’s profitability can help with cost-cutting, pricing, and investment decisions. Here’s ...