Profitability

Profitability Terms

Measures of how efficiently a company generates profit from its operations.

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Total terms 10
With calculator 8
Last updated Apr 2026
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EBITDA Margin

Operating profitability as a percentage of revenue, before interest, taxes, depreciation, and amortization.

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EPS

The portion of a company's profit allocated to each outstanding share.

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Gross Margin

The percentage of revenue remaining after deducting the cost of goods sold.

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Net Margin

The percentage of revenue that remains as profit after all expenses and taxes.

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Operating Margin

The percentage of revenue remaining after all operating costs — before interest and taxes.

Profitability

ROI

A measure of the profit earned on an investment relative to its cost.

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ROA

Measures how efficiently a company uses its total assets to generate net income.

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ROE

Measures how much profit a company generates per dollar of shareholders' equity.

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ROIC

Measures how efficiently a company generates profit from all capital invested by shareholders and debt-holders.

Profitability

Unit Economics

The direct revenues and costs associated with a single unit of a business, used to assess per-transaction profitability and scalability.