ROI (return on investment) equals sales margins divided by the firm's capital turnover ratio. This equation requires first finding the sales margin and then the capital turnover ratio; then dividing ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Learn how to calculate operating cash flow margin, a vital indicator of earnings quality and efficiency, with a detailed formula and practical example.

In a traditional brokerage account, you use your own money to buy securities. With a margin account, you borrow money from ...

Gross profit and gross margin show the profitability of a company when comparing revenue to the costs involved in production. Both metrics are derived from a company's income statement and share ...

Below is an example of the net income of Home Depot (NYSE: HD) from 2018 to 2020. The data show that the retailer’s operating margin held steady from 2018 to 2019 as costs were kept in check relative ...

Investing requires funding. If you find yourself coming up short, an investment broker will commonly allow you to purchase stocks or other assets on margin. But that doesn’t mean it’ll fully fund the ...

Just because you make a profit doesn't mean you are achieving your optimal profit goals. In some cases, profits can be deceiving if they don't give you a good return on your investment in making and ...

Those who can act quickly in stock trading often reap the biggest potential rewards. Not all people are, however, big enough investors to have such capital ready to execute a large trade when ...