Although both use net profit

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not only cover its costs, but also generate a significant percentage of profit based on the sales made. What is the difference between profitability and profitability? In the business world, profitability and profitability are metrics that are generally interconnected, but have crucial differences between them. Profitability focuses on the comparison between the company's net profit and total sales, while profitability is based on the relationship between net profit and investments made.  as a starting point, their objectives are different when it comes to analyzing financial.


performance. Even though they are closely related, it is Phone Number List for a company to have good profitability and, at the same time, low profitability, and vice versa. In practice, profitability is influenced by factors such as operating costs, pricing strategies and competitiveness. On the other hand, profitability is linked to the business's ability to generate a positive return from the resources invested. Together, the two indicators determine whether the revenue generated by sales will be enough to cover all expenses and still generate a profit at the end of a period . Therefore, by calculating and understanding.




these key performance indicators, it is possible to obtain valuable insights and make necessary adjustments to the business strategy. How to calculate the profitability of your business? The first step in carrying out this calculation is to identify the Gross Revenue generated in the period that needs to be evaluated, which can be monthly, bimonthly, semi-annual or annual. This index can be calculated generally, covering all aspects of the company, or.