Gross income is the total of all income you receive before taxes. It’s also called pre-tax income. Net income is your income ...

That result is multiplied by 100 to convert the net margin ratio into a percentage. Here's the formula for net profit margin: Net Profit Margin Formula Let's say a company generates $1 billion of ...

Investors should look for companies that offer solid returns after meeting all operating and non-operating costs. Thus, it is a good idea to bet on a profitable company over a loss-making one.

Debt service coverage ratio is calculated by dividing your net operating income (gross income – operating ... service coverage ratio By nature of the formula, your debt service coverage ratio ...