Learn how to calculate operating cash flow margin, a vital indicator of earnings quality and efficiency, with a detailed formula and practical example.

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Gross profit and gross margin show the profitability of a company when comparing revenue to the costs involved in production. Both metrics are derived from a company's income statement and share ...

ROI (return on investment) equals sales margins divided by the firm's capital turnover ratio. This equation requires first finding the sales margin and then the capital turnover ratio; then dividing ...

Below is an example of the net income of Home Depot (NYSE: HD) from 2018 to 2020. The data show that the retailer’s operating margin held steady from 2018 to 2019 as costs were kept in check relative ...

When a business wants to calculate exactly how much revenue it earns from the sale of its products, it looks at the contribution margin ratio. The contribution margin ratio tells a company how much ...

Investing requires funding. If you find yourself coming up short, an investment broker will commonly allow you to purchase stocks or other assets on margin. But that doesn’t mean it’ll fully fund the ...