Browse the library
Topic
Profitability
12 guides in Finabase Learn
- EBIT Earnings before interest and taxes: profit from operations before financing costs and income tax.
- Gross margin Gross profit divided by revenue: the share of each sales dollar left after paying the direct costs of what was sold.
- Gross profit Revenue minus cost of goods sold, before operating expenses, interest and tax.
- Net profit margin Net income divided by revenue: the share of each sales dollar that ends up as profit after all costs.
- Operating income Gross profit minus operating expenses such as research, sales and administration; profit from the core business.
- Operating margin Operating income divided by revenue: what share of sales remains after the costs of running the business, before interest and tax.
- Profit margins: gross, operating and net margin explained How to calculate gross, operating and net margin, read them as a ladder of costs, and spot mix effects and one-time charges, using Apple’s fiscal 2023–2025 results.
- Return on assets (ROA) Net income divided by total assets: how much profit a company generates from everything it owns, regardless of how it is financed.
- Return on assets (ROA): how to calculate and compare it Calculate return on assets, link it to margin and asset turnover, see why banks and tech firms differ, and compare Apple’s 30.9% ROA with its ROE and ROIC.
- Return on equity (ROE) Net income divided by shareholders’ equity: the profit a company earns on the money its owners have invested and left in the business.
- Return on equity (ROE): formula, DuPont analysis and pitfalls How to calculate return on equity on average or ending equity, split it with DuPont analysis, and see why Apple’s 171% ROE says more about buybacks than profit.
- Return on invested capital (ROIC) After-tax operating profit divided by the debt and equity invested in operations: a measure of returns that is neutral to financing.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.