The Gross Margin
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A business’s gross margin measures how much sales revenue the company retains after all of the direct costs associated with making a product or providing a service are accounted for.
Amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation.
Learn more about the measurement used to calculate what proportion of a company's revenue is left over after production costs.
Otherwise known as the "bottom line", net income is the most commonly used indicator of a company's profitability. Learn more about how it an investor's decision to own or sell a stock.
Learn a primary method investors use to analyze a company's profitability.
Working capital is one of the basic metrics used to evaluate a company's financial health. Find out what it can tell you about a stock and learn how to calculate it.
The dividend payout ratio and retention ratio measure how much profit a company gives back to shareholders as dividends. When a business earns money, it must decide whether to use all of its earnings for future operations or to pass some of it along to stockholders through a quarterly dividend check.
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