Gross Margin: Definition and How to Calculate

Gross Margin: Definition and How to Calculate

The Basics Gross margin is the amount of profit a company has left after deducting the cost of goods sold (COGS) from the revenue generated by selling those goods. It’s expressed as a dollar amount. The gross margin ratio is the percentage of revenue left over after...
Operating Expenses: Definition and Examples

Operating Expenses: Definition and Examples

The Basics Operating expenses (also called OPEX or overhead) are the amount of money a company spends on business operations.  Operating expenses include rent and other fixed costs, as well as variable costs for office supplies, or operating activities such as...