Economic profit contrasts from net income by subtracting both usual costs and missed alternative profits. Short-term economic losses may lead to long-term gains if underlying business strategies ...

Understanding profit and profit margins is critical for business owners and corporate decision makers to reach their ultimate goal – earn the money they need to be successful and grow their company.

Net profit is the money a business earns in a particular period from selling its products after paying all of its expenses. (While it's important to look at your small business's overall net profit ...

If you have $100,000 in pretax profit, that's better than running in the red – but is it good enough? That's where the pretax margin calculation comes in by transforming the dollar amount into a ...

Pre-tax profit is a firm's income before taxes, found on the income statement. Calculate pre-tax profit by adjusting net income for the effective tax rate. Alternatively, adjust operating income by ...

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...