Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

In accounting and business, the breakeven point (BEP) is the production level at which total revenues equal total expenses.

Shareholder value is the return of an investment in a given company. Shareholder value is created when a company's returns exceed its cost of doing business. When a company's management team employs ...

Forbes contributors publish independent expert analyses and insights. Lien De Pau, founder of The Big Exit. Sell your biz for max value. For small business owners, profit matters a lot. It's more than ...

Net sales show the true revenue your business makes from selling products or services, after subtracting returns, allowances and discounts. To find net sales, begin with your total sales and deduct ...

As a business owner, it may be second nature to remember to pay your employees or adequately invest in your business. However, it’s just as important to compensate yourself for your contributions to ...

Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...