Gross profit and EBITDA each show the earnings of a company but they calculate profit in different ways. Investors and analysts may want to look at both profit metrics to gain a better ...

The equation for working out gross profit: Revenue – Cost of sales = Gross profit Expenses (overheads) – these are the costs that do not change as production increases or decreases.

Gross Profit Percentage Ratio works out the amount of profit from the buying and selling of goods before all other expenses are deducted.

Operating income measures a company’s efficiency and performance and is the profit after operating expenses have been subtracted from gross profit ... in check. The rate of change for cost ...