A periodic inventory system uses a manual inventory count at the end of the year. This amount, labeled ending inventory, becomes the beginning inventory for the next year. Purchases of new inventory ...

Inventory is an asset. Figuring its value is important when you're running financial metrics, just like knowing the value of your factory or the expense of administrative overhead. The gross profit ...

Discover how gross profit and operating income differ and why both are crucial in assessing a company’s financial health. Get ...

Gross profit margin is a ratio that measures the percentage of revenue left after subtracting production costs. By indicating the profitability of a company's core business operations, gross profit ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

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 ...

Gross profit margin measures profitability by dividing gross profit by revenue. A high gross profit margin indicates efficient cost management and pricing strategy. Comparing a company's margin with ...