In addition to net profit, two common metrics used to assess a company's core strengths and weaknesses are gross profit and earnings before interest, taxes, depreciation, and amortization (EBITDA).

we'll focus on net profit margin because many more factors influence net profits than gross or operating profits. Net profit margin is the ratio of net income relative to revenues, calculated by ...

but it’s not to be confused with gross profit margin, which is a profitability ratio that is calculated separately. Gross margin is simply calculated by subtracting cost of goods sold from revenue.