# data[].attributes.body
Something you want to have, but not a need.
Ex: phone, new Xbox

# data[].attributes.body
Something you need to be able to live. Ex: food, shelter, clothing

# data[].attributes.body
Susan buys an iPhone X for $1,000.
She paid 0.0825% sales tax, so she has to pay $82.50

# data[].attributes.body
Jim buys a new car for $20,000.
He pays property tax for $2,000.
He pays a 10% property tax.

# data[].attributes.body
When a company lowers the price of their product to try to get you to buy it.

# data[].attributes.body
Money added to your balance to either pay or receive. Sometimes this is good, sometimes bad.

# data[].attributes.body
You are buying stuff straight out of your checking account.

# data[].attributes.body
You are spending the company's money, which you have to pay back later. If you do not pay, you could get interest.

# data[].attributes.body
You invest your money in a bank, and have an account, based on how much money you invested. You can always make a withdrawal from the bank to get your money back.

# data[].attributes.body
An account in which you store money to keep it safe. You can spend it, but use your money wisely!

# data[].attributes.body
When you are putting money in an account to save, not spend. You can earn interest to grow your funds.

# data[].attributes.body
You make lots of money, and easily support your family.

# data[].attributes.body
When you work hard, and make amounts of money that can support your family.

# data[].attributes.body
When you do not have enough money to pay for a car, rent, or credit card.

# data[].attributes.body
Money you have to pay to the government.

# data[].attributes.body
Comparing prices can help us save money and be smart about

# data[].attributes.body
Money taken out or removed from an account, or payment.

# data[].attributes.body
When you have to buy something. It costs you an expense.

# data[].attributes.body
Money you make from working.

# data[].attributes.body
When you owe someone amounts of money.

# data[].attributes.attachment_link.description
Definition of debt: A duty or obligation to pay money, deliver goods, or render service under an express or implied agreement. One who owes, is a debtor or debitor; one to whom it is owed, is a debtee, creditor, or ...

# data[].attributes.body
Profit you really make, after taxes and deductions.

# data[].attributes.attachment_link.readable_text
Gross profit margin and net profit margin are two separate profitability ratios used to assess a company's financial stability and overall health.

Profit margin is a percentage measurement of profit that expresses the amount a company earns per dollar of sales. Obviously, if a company makes more money per sale, it has a higher profit margin.

The gross profit margin shows total revenue minus the cost of goods (the amount it cost the company to produce the goods or services that it sold, commonly referred to as cost of goods sold, or COGS). The calculation to arrive at gross profit margin is:

Gross profit margin = (Revenue - Cost of Goods) ÷ Revenue = Gross Profit ÷ Revenue

For the year ended December 31, 2016, Dunkin' Brands Group, Inc. (DNKN), the holding company of Dunkin' Donuts and Baskin-Robbins, reported a total revenue of $828.89 million and COGS of $148.61 million. DNKN's gross profit margin is:

($828.89 - $148.61) ÷ $828.89 = 82.07%

This means that for every dollar DNKN generates in sales, $0.18 is used to cover the cost of inventory, and $0.82 is available to cover basic operating expenses. A higher ratio is usually preferred as this would indicate that the company is selling inventory for a higher profit. Gross profit margin provides a general indication of a company's profitability, but it is not a precise indication.

The net profit margin is a more accurate measure of a company's profitability, as it reveals the percentage of revenue that actually reflects a company's profit per dollar of sales. Net profitability is an important distinction, since increases in revenue do not necessarily translate into actual increased profitability. Net profit is the gross profit (revenue minus cost of goods) minus operating expenses and all other expenses, such as taxes and interest paid on debt. The formula for net profit margin is as follows:

Net profit margin = (revenue - cost of goods - operating expenses - other expenses - interest - taxes) ÷ revenue = Net Income ÷ Revenue

DNKN's net profit margin for the fiscal year ended December 31, 2016 is:

$195.58 million ÷ $828.89 = 23.60%

A 23.60% net profit margin indicates that for every dollar generated by DNKN in sales, the company keeps $0.24 as profit. It is also possible for a company to have a negative net profit margin. A negative net profit margin occurs when a company makes a loss for the quarter or year and could be a temporary issue for the company. Reasons for losses could be increases in the cost of labor and raw materials, recessionary periods, and introduction of disruptive technological tools that could affect the company's bottom line.

Examining its net profit margin can help a company gain a much clearer picture of its overall expenses compared to revenue. It is often much easier for a company to increase its profitability by reducing costs than by increasing sales, especially if the company operates in a very competitive market.

# data[].attributes.attachment_link.title
What is the difference between gross profit margin and net profit margin?

# data[].attributes.attachment_link.description
Gross profit margin and net profit margin are two separate profitability ratios used to assess a company's financial stability and overall health. Profit margin is a percentage measurement of profit that expresses the amount a company earns per dollar of sales. Obviously, if a company makes more money per sale, it has a higher profit margin.

# data[].attributes.body
Profit you make before deductions.

# data[].attributes.attachment_link.readable_text
What is 'Gross Profit'

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement, and can be calculated with this formula:

Gross profit = Revenue - Cost of Goods Sold

Gross profit is also called sales profit and gross income.

BREAKING DOWN 'Gross Profit'

Gross profit assesses a company's efficiency at using its labor and supplies. The metric only considers variable costs, that is, costs that fluctuate with the level of output, such as:

materials;

direct labor, assuming it is hourly or otherwise dependent on output levels;

commissions for sales staff;

credit card fees on customer purchases;

equipment, perhaps including usage-based depreciation;

utilities for the production site;

shipping; etc.

As generally defined, gross profit does not include fixed costs, or costs that must be paid regardless of the level of output. Fixed costs include rent, advertising, insurance, salaries for employees not directly involved in production, and office supplies. However, it should be noted that a portion of the fixed cost is assigned to each unit of production under absorption costing, which is required for external reporting under the Generally Accepted Accounting Principles (GAAP)​. For example, if a factory produces 10,000 widgets in a given period, and the company pays $30,000 in rent for the building, a cost of $3 would be attributed to each widget under absorption costing.
[ Gross profit is commonly used in fundamental analysis and quantitative trading algorithms. If you're looking to learn more about fundamental analysis and how to decide whether not to invest in a company, check out Investopedia Academy's Fundamental Analysis course. You'll learn actionable strategies in over five hours of on-demand video, exercises, and interactive content. ]
Gross profit shouldn't be confused with operating profit, also known as earnings before interest and tax (EBIT), which is a company's profit before interest and taxes are factored in. Operating profit is calculated by subtracting operating expenses from gross profit.

Gross profit can be used to calculate the gross profit margin. Expressed as a percentage of revenue, this metric is useful for comparing a company's production efficiency over time. Simply comparing gross profits from year to year or quarter to quarter can be misleading, since gross profits can rise while gross margins fall, a worrying trend that could land a company in hot water. The terminology here can cause some confusion: "gross margin" can be used to mean either gross profit and gross profit margin. Gross profit is expressed as a currency value, gross profit margin as a percentage. The formula for gross profit margin is:

Gross profit margin = gross profit / revenue = (revenue - cost of goods sold) / revenue

Gross profit margins vary greatly by industry. Food and beverage stores and construction firms have razor-thin gross profit margins, for example, while the healthcare and banking industries enjoy much larger ones.

Here is an example of how to calculate gross profit and the gross profit margin, using Ford Motor Co.'s 2016 annual income statement:

To calculate the gross profit, we first add up the cost of goods sold which sums up to $126,584. We do not include selling, administrative and other expenses, since these are mostly fixed costs. We then subtract the cost of goods sold from revenues to obtain a gross profit of $151,800 - $126,584 = $25,216 million.

To obtain the gross profit margin, we divide the gross profit by total revenues for a margin of $25,216 / $151,800 = 16.61%. This compares favorably to an automotive industry average of around 14%, suggesting that Ford operates more efficiently than its peers.

Standardized income statements prepared by financial data services may give slightly different gross profits. These statements conveniently display gross profits as a separate line item, but they are only available for public companies. Investors reviewing private companies' income should familiarize themselves with the cost and expense items on a non-standardized balance sheet that do and don't factor into gross profit calculations.

For more on gross profit, see Understanding Profit Metrics: Gross, Operating, and Net Profits.

# data[].attributes.attachment_link.description
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement, and can be calculated with this formula: Gross profit = Revenue - Cost of Goods Sold Gross profit is also called sales profit and gross income.

# data[].attributes.body
Based on the value of your property, you pay a percentage of the value.

# data[].attributes.body
Helps you manage the money you make, learning how to spend wisely.

# data[].attributes.body
A percentage of the money you make that goes to the government

# data[].attributes.attachment_link.readable_text
Download State Individual Income Tax Rates and Brackets for 2016 (EXCEL)Download FISCAL FACT No. 500: State Individual Income Tax Rates and Brackets for 2016 (PDF)
Key Findings

Individual income taxes are a major source of state government revenue, accounting for 37 percent of state tax collections.

Forty-three states levy individual income taxes. Forty-one tax wage and salary income, while two states-New Hampshire and Tennessee-exclusively tax dividend and interest income. Seven states levy no income tax at all.

Of those states taxing wages, eight have single-rate tax structures, with one rate applying to all taxable income. Conversely, 33 states levy graduated-rate income taxes, with the number of brackets varying widely by state.

States' approaches to income taxes vary in other details as well. Some states double their single-bracket widths for married filers to avoid the "marriage penalty." Some states index tax brackets, exemptions, and deductions for inflation; many others do not. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all.

Individual income taxes are a major source of state government revenue, accounting for 27 percent of state tax collections.[1] Their prominence in public policy considerations is further enhanced by the fact that individuals are directly responsible for filing their income taxes, in contrast to the indirect payment of sales and excise taxes. To many taxpayers, the personal income tax is practically synonymous with their own tax burdens.

Forty-three states levy individual income taxes. Forty-one tax wage and salary income, while two states-New Hampshire and Tennessee-exclusively tax dividend and interest income. Seven states levy no income tax at all.

Of those states taxing wages, eight have single-rate tax structures, with one rate applying to all taxable income. Conversely, 33 states levy graduated-rate income taxes, with the number of brackets varying widely by state. Kansas, for example, imposes a two-bracket income tax system. At the other end of the spectrum, two states-California, and Missouri- have 10 tax brackets. Top marginal rates range from Pennsylvania's 3.07 percent to California's 13.3 percent.

In some states, a large number of brackets are clustered within a narrow income band; Missouri taxpayers reach the state's tenth and highest bracket at $9,001 in annual income. In other states, the top marginal rate kicks in at $500,000 (New Jersey) or even $1,000,000 (California, if one counts the state's "millionaire's tax" surcharge).

States' approaches to income taxes vary in other details as well. Some states double their single-bracket widths for married filers to avoid the "marriage penalty." Some states index tax brackets, exemptions, and deductions for inflation; many others do not. Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all. In the following table, we provide the most up-to-date data available on state individual income tax rates, brackets, standard deductions, and personal exemptions for both single and joint filers.

Notable Individual Income Tax Changes in 2016

Several states changed key features of their individual income tax codes between 2015 and 2016. These changes include:

Arkansas lowered its top marginal rate from 7 percent to 6.9 percent on income over $35,100. Also, it adopted a new tax schedule for individuals earning between $21,000 and $75,000 in income. The state now has three tax schedules, with differing rates, depending on income.[2]

Temporary tax increases expired in Hawaii. The three top rate brackets were eliminated, and the top marginal rate fell from 11 percent to 8.25 percent.[3]

Maine lowered tax rates and added a third tax bracket. Rates were cut from 6.5 and 7.95 percent to 5.8, 6.75, and 7.15 percent.[4]

Massachusetts's rate fell from 5.15 percent to 5.1 percent.[5]

Ohio's tax rates decreased with the top marginal rate falling from 5.333 to 4.997 percent.[6]

Errata: The original edition of this piece misstated the percentage of tax revenue that comes from individual income taxes. It has been corrected.

# data[].attributes.attachment_link.title
State Individual Income Tax Rates and Brackets for 2016 - Tax Foundation

# data[].attributes.attachment_link.description
Download State Individual Income Tax Rates and Brackets for 2016 (EXCEL)Download FISCAL FACT No. 500: State Individual Income Tax Rates and Brackets for 2016 (PDF) Key Findings Individual income taxes are a major source of state government revenue, accounting for 37 percent of state tax collections. Forty-three states levy individual income taxes.

# data[].attributes.body
Sales tax is a percentage of your purchase that you have to pay to the state government to pay for things like roads or bridges.