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4 Ways to Measure Your Profitability

If the revenue from your products and services is covering your expenses, you’re turning a profit.

Net Profit Margin

Net profit margin, sometimes referred to as just “profit margin,” is the big picture view of your profitability.

Gross Profit Margin

If you sell physical products, gross profit margin allows you to home in on your product profitability.

Comparative Expense Analysis

If you suspect that some operating expenses are creeping up, it’s a good idea to perform a comparative analysis of your operating expenses.

Profit by Segment

Segment your business by product or service lines to find out which areas of your business have the best revenue and net income.