A firm’s net profit margin is a key indicator of its profitability. Analyzing it can tell potential investors whether the business may be a good bet.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Eric's career includes extensive work in ...

What’s a good profit margin for your business? There’s a quick answer to this question. A good profit margin is usually 10% or higher for most businesses, though this varies significantly by industry.

Gross profit margin and operating profit margin are two metrics used to measure a company’s profitability. Gross profit margin measures production cost efficiency. Operating profit margin includes ...

When a startup scales quickly, it can face particular challenges, like profit margins beginning to erode due to increased costs. A telltale scenario that this is happening could look like this: Your ...