Gross margin is the percentage of money a company keeps from its sales after covering the direct costs of producing its goods or services. It shows how efficiently a business turns revenue into ...

Image source: The Motley Fool For example, if you're paid an annual salary of $75,000 per year, the formula shows that your gross income per month is $6,250. Many people are paid twice a month ...

Operating margin is calculated with the same formula as gross margin ... Common profitability ratios include gross profit margin, net profit margin, return on assets (ROA), operating margin ...

The basic return on assets formula is to divide a company's net income by its average total assets. The result is then typically multiplied by 100 to convert the final figure into a percentage.