Economic Profit – The Ultimate Guide for Investors
Picture this: You quit your $100,000-per-year job to start a business. After a year of hard work, your company generates $120,000…
Economic Profit vs Accounting Profit: Key Differences Explained
Imagine you’re running a lemonade stand. At the end of summer, you count your cash and realize you made $500. Success,…
Gross Profit: Definition, Formula, Margin & Analysis
Picture this: You’re running a lemonade stand on a hot summer day. You sell 50 cups at $2 each, making $100….
Net Profit: Definition, Formula & Why It’s Important
Picture this: You just launched your first side hustle selling handmade candles. You made $5,000 in sales last month, amazing! But…
What Is Profitability Analysis & How to Do It: Metrics, Example & Tips
Imagine running a lemonade stand all summer, working every weekend, and at the end of the season, realizing you have no…
Profitability Ratios: What They Are & Why They Matter
Imagine you’re at a carnival, and you’ve got two lemonade stands side by side. Both sell the same number of cups,…
What Is Retained Earnings: Definition, Formula & Examples
Picture this: You’ve just finished your first full year running a small online business. After paying all your expenses, you made…
Net Profit Margin: Definition, Formula, Benchmarks (2025 Guide)
Picture this: Two coffee shops sit side by side on the same street. Both bring in $500,000 in revenue each year….
Gross Profit Margin: Formula, Benchmarks & Guide
Picture this: You’re running a lemonade stand. You spend $10 on lemons, sugar, and cups. You sell all your lemonade for…
