Operating margin is calculated by dividing operating income by net sales or revenue. The result is often expressed as a percentage. Operating income is a measurement of profit that includes all expenses except interest a... More »

Work out a profit margin by dividing a measure of the company's profitability by the revenue, or sales, figure. There are a few different calculations for profit margins, depending on what data is required More »

Gross profit is calculated by subtracting the cost of goods sold from sales. Businesses also use these two inputs to calculate gross profit margin, which expresses the relationship between gross sales and cost of goods s... More »

Work out a profit margin by dividing a measure of the company's profitability by the revenue, or sales, figure. There are a few different calculations for profit margins, depending on what data is required More »

Optimal sales price is calculated as the necessary revenue to achieve a desired profit margin divided by the quantity of product units forecast to sell, explains small-business writer Gregory Hamel. A profit margin is th... More »

Net income plus operating expenses is equal to gross profit. The gross profit is what a company earns after it sells a product and pays all other costs associated with the production and sale of it. More »

To calculate profit and loss, evaluate revenue, cost of goods sold and the expenses incurred, then subtract cost of goods sold and expenses from sales. A positive result denoted profit, while a negative result indicates ... More »