Profitability KPI

in this section you will learn all about KPI regarding Profitability section in Dashboard.

You can access the Profitability segment by clicking the "Profitability" in dashboard as below.

There are 8 KPI related to profitability such as;

Revenue

Definition : Income from normal business operations (excluding abnormal income and interest )

Gross Profit

Definition : Measure the efficiency of the business in making use of its cost of sales or cost of goods sold i.e raw materials, direct labor and manufacturing-related fixed assets to generate profits

Important : Reflects the company’s ability to produce goods/selling services at a profitable margin.

Formula : (Net Revenue - COGS)

Gross Profit %

Definition : Shows the relationship between a company’s gross profit and its net revenue. It is used to analyze how efficiently a company is using its raw materials, direct labor and manufacturing-related fixed assets to generate profits

Important : A measure of efficiency in production/operation and the company’s pricing strategy.

Formula : (Net Revenue - COGS) / Net Revenue

Opex

Definition : Operating expenses, or “OPEX,” refers to the costs incurred by a business for its operational activities. In other words, OPEX are the costs that a company must make to perform its operational activities

Important : High OPEX can shrink profit margins, while controlling it can improve profitability.

Formula : (Net Revenue - COGS) / Net Revenue

Opex%

Definition : OPEX as a percentage of revenue.

Important : Shows the proportion of revenue spent on operating the business.

Formula : OPEX / Net Revenue x 100%

Net Profit / (Loss)

Definition : Net profit is the amount of profit that is left over after all expenses and costs have been deducted from the total income.

Important : The final measure of profitability, showing what the business keeps after all costs.

Ebitda

Definition : Earnings before interest, taxes, depreciation, and amortization.

Important : A key metric to assess operating performance without the impact of capital structure and tax environments.

Formula : Net Income + Interest + Tax + Depreciation + Amortization

Profit From Operation

Definition : Profit after deducting operating expenses but before interest and taxes.

Important : Shows the profitability of core operations without external factors like taxes, other income or interest.