Calculating the gross profit is the first step in the analysis of the company's profitability. That tells you how profitable the company's production is. But it's not a complete picture to assess the profitability of a company. Factors such

# Gross Profit

## Operating Profit Margin: Formula, Calculation and Interpretation

What's it: Operating profit margin is a profitability ratio to measure the percentage of profit a company generates from its core business. It tells us how much profit the company makes after paying operating expenses but

## Gross Profit Margin: Formula, Calculation, and Interpretation

What's it: Gross profit margin or gross margin is a financial ratio to measure a company's profitability, calculated by dividing gross profit by revenue. We get gross profit by subtracting the cost of goods sold from

## EBITDA Margin: Formula, Calculation, and Interpretation

What's it: EBITDA margin is a profitability ratio to measure how much a company profits from recorded revenue after adjusting for non-cash items but before paying interest and taxes. We calculate it by dividing EBITDA by