Contribution Margin vs Operating Margin
What do we mean by Contribution Margin and Operating Margin?The contribution margin is the net turnover minus the variable share of the total cost… Read Article
Margin Ratios
Contribution Margin vs Gross Margin
What do we mean by Contribution margin and Gross margin?Contribution Margin and Gross Margin are two important concepts in Management Accounting. They also help… Read Article
Gross Profit Percentage – Meaning, Example, Advantages and more
What is the Gross Profit Percentage?Gross profit (GP) percentage is a measure of a firm’s profitability at a gross level. It is expressed in… Read Article
Financial Breakeven – Meaning, Formula, and Examples
Financial Breakeven PointA breakeven point is when a company is making no profit, no loss, or it is a threshold beyond which the company… Read Article
Advantages and Disadvantages of Profitability Ratios
Advantages and Disadvantages of Profitability RatiosThe advantages and disadvantages of profitability ratios are important things to keep in mind before utilizing these ratios in… Read Article
Operating Ratio
The operating ratio is a type of profitability ratio. It is the comparison of an operating expense to the revenue of a business. Operating… Read Article
Return on Sales
Return on sales measures the operating profit margin of the company and how the management is working on using the resources. It evaluates whether… Read Article
Operating Margin Ratio
What is the Operating Margin Ratio?The operating margin ratio is the ratio of operating income to the revenue of the business. It highlights the… Read Article
Net Profit Margin or Ratio
Net profit margin (NP Margin) is one of the profitability ratios and an important tool for financial analysis. It is the final output any… Read Article
How to Analyze Gross Profit Margin?
The gross profit margin is the first benchmark of a business model. Businesses failing to achieve the maximization of gross profit margin fails to… Read Article
Gross Profit Margin and its Interpretation
What is Gross Margin or Gross Profit Margin?Gross profit margin (GP Margin) is the ratio of gross profit to net sales. The other names… Read Article