Dhrumil

Project Profitability | Company Profitability

Q. What is profitability?
A. Gross Income - Cost of Goods Sold = Net Profit

While the above is a solid answer, its a bit generic. Often times we forget that its not only the profitability of a project we are interested in measuring, but the overall profitability of the company.

If we’re looking to measure the profitability of a particular project this formula works perfectly: Total Project Income - Cost of Contracted Services = Project Profit.

Example
$10,000 (Project Bid) - $3,500…

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