Operating margin is a profitability ratio that measures a company’s ... Either method of calculation delivers the operating income figure that is divided by revenue to bring in the operating ...

Businesses often use profitability ratios to gauge their ... used include the gross profit margin, operating profit margin and net profit margin. To calculate the gross profit margin, subtract ...

Operating income measures a company’s efficiency and performance and is the profit after operating expenses have been subtracted from gross profit. Before delving further into operating income ...

Size up potential investments with profitability ratios, liquidity ratios, solvency ratios, and valuation ratios. Use them in combination for a comprehensive view.

Eliana Rodgers / Investopedia The total expense ratio (TER ... Below is the formula and the steps to calculate the TER: To calculate the TER: Operating expenses, or operating costs, cover any ...

The break-even calculation for sales is: (Operating Expenses + Annual Debt Service)/Gross Profit Margin = Break-Even Sales Let's use ABC Clothing as an example and compute this company's break ...

Definition: A profitability measure that evaluates the performance of a business by dividing net profit by net worth Return on investment, or ROI, is the most common profitability ratio.