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WAYS TO MEASURE YOUR PROFITABILITY

NET PROFIT MARGIN

GROSS PROFIT MARGIN

COMPARATIVE EXPENCE ANALYSIS

PROFIT BY SEGMENT

To calculate the margin, divide net profit — total revenue minus all expenses — by revenue.

Gross profit margin allows you to home in on your product profitability. Your total gross profit is sales revenue minus your cost of goods sold.

A comparative analysis is a side-by-side percentage comparison of two or more years of data.

There are two ways to calculate profit by segment.

One option is to identify the specific revenue and costs associated with the segment.