Operating profit margin is a concise measure of how much your company actually earns at the end of the day. It is expressed as a percentage, showing what portion of your company's revenue actually ...

Operating income is a value that is used to demonstrate a company’s profitability after it has deducted other costs such as cost of goods sold (COGS), employee wages and other operating expenses. This ...

Your company's operating cycle provides a gauge of how long it has cash tied up in operations, which is why it's also commonly referred to as the cash conversion cycle. The operating cycle is a rough ...

Most investors are familiar with calculating return on investment, or ROI. It's one of the most-common metrics used to determine an investment's success or failure. You may not, however, be as ...

The goal of every company is to become profitable, but it often takes time for a business to achieve that goal. Most companies have fixed costs it has to cover as part of doing business, and there are ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...

Operating cash flow, or OCF, refers to the amount of cash a company generates from normal business operations over a specific period of time. It’s widely used to evaluate a company’s performance and ...

Two measures used for understanding a company's financial health are EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income. While both help gauge how well a ...

What goes into generating a single dollar of revenue, in your business? Can you accurately define your true operating costs? So many times I’ve heard owners say: “I take my material cost and multiply ...

Operating income is a value that is used to demonstrate a company’s profitability after it has deducted other costs such as cost of goods sold (COGS), employee wages and other operating expenses. This ...