Most investors are familiar with calculating return on investment, or ROI. It's one of the most-common metrics used to determine an investment's success or failure. You may not, however, be as ...

Operating income is a value that is used to demonstrate a company’s profitability after it has deducted other costs such as cost of goods sold (COGS), employee wages and other operating expenses. This ...

Your company's operating cycle provides a gauge of how long it has cash tied up in operations, which is why it's also commonly referred to as the cash conversion cycle. The operating cycle is a rough ...

The goal of every company is to become profitable, but it often takes time for a business to achieve that goal. Most companies have fixed costs it has to cover as part of doing business, and there are ...

If you own or run a business, you should pay close attention to your operating margin. This ratio measures a company's operating income or profit as a proportion of the net sales from ongoing business ...

Operating cash flow, or OCF, refers to the amount of cash a company generates from normal business operations over a specific period of time. It’s widely used to evaluate a company’s performance and ...

Two measures used for understanding a company's financial health are EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income. While both help gauge how well a ...

Either method of calculation delivers the operating income figure that is divided by revenue to bring in the operating margin. The difference between the two is the approach on profit: Operating ...

EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income are key measures used to assess a company's financial performance. While both indicate profitability, they ...

The Financial Accounting Standards Board (FASB) introduced a new accounting standard (ASU 2016-02) that requires companies to recognize operating lease assets and liabilities on the balance sheet. My ...