Profit is an essential component of any business operation. It indicates the business's financial success and allows owners to continue running their companies. Understanding how to calculate profit ...

Net profit is the money a business earns in a particular period from selling its products after paying all of its expenses. (While it's important to look at your small business's overall net profit ...

Profit margin is a key financial metric that reveals the percentage of profit a business earns from its total revenue. It showcases how much money is left over after all expenses are deducted from the ...

Calculate net profit margin by dividing net income by total revenue and multiplying by 100. Net profit margin helps compare profitability across businesses and historical performance. Monitoring net ...

Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

Pre-tax profit is a firm's income before taxes, found on the income statement. Calculate pre-tax profit by adjusting net income for the effective tax rate. Alternatively, adjust operating income by ...

A franchise hotel is an independently owned hotel that is affiliated with a larger brand of hotels. The franchise hotel owner pays a franchise fee to use the brand's name, logo, reservation system and ...

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 ...