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.

Earnings before interest and taxes (EBIT) indicate a company's profitability and are calculated as revenue minus expenses, excluding taxes and interest expenses.

Reviewed by Andy Smith Fact checked by David Rubin Key Takeaways Operating expenses are essential daily business costs, separate from production expenses.Reducing operating expenses can increase ...

Editor’s Note: This post is focused on helping you understand profit and loss statements. This financial statement is used by most small business owners to help assess business profits and losses ...