Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...
One way to determine profitability is to calculate the ratio of profits to other financial metrics, such as sales, assets or equity. Common profitability measures include the net income margin, which ...
Subtracting your expenses from your income gives you your bottom-line financial profit but doesn't tell you how you're doing in different areas and how you can improve your operations. You should ...
Calculating how far a number has declined from one year to the next is pretty easy if you are only considering a one year period. You subtract the current year's number from last year's number, then ...
Let's face it: Even the best budgets can't always predict your actual expenses. Things happen. Unexpected costs arise. That's life. That's why it's so useful to review your budget after a project is ...
Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...