In order to determine their profitability, businesses look at their total net income relative to their total sales, or gross revenue. This figure, expressed as a percentage, is also known as the ...

One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...

Calculating profit as a percentage of revenue shows relative profitability, like Apple's 30.5% vs Fitbit's 20.5%. Common size income statements allow comparisons across companies and time by ...

Total margin ratio is found by dividing net income by total revenue, then multiplying by 100. This ratio aids investors in assessing a company's profitability from its total revenues. Using this ratio ...