# How do you measure customer profitability?

**customer**by total sales for each

**customer's**contribution to revenue growth. This is an indirect, but more accurate

**measure**of

**profitability**as it does not take average costs into consideration. Subtract the average cost of each

**customer**from each

**customer**sales total.

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Then, how do you determine profitability?

**Profitability Ratios Formula**

- Gross Profit Margin = (Gross Profit / Sales) * 100.
- Operating Profit Margin = (Operating Profit / Sales) * 100.
- Net Profit Margin = (Net Income / Sales)* 100.
- Return on Assets = (Net income / Assets)* 100.
- Return on Equity = Net Income / Shareholder's Equity.

Subsequently, question is, what is a profitability report? The **profitability report** is one of the key **reports** in Productive. It shows your net profit in money and percentage (margin), among other useful information. The **report** aggregates all of your project data, including not only revenues, but also costs that people incur when tracking time (salaries and overheads).

Moreover, how do you write a profitability analysis?

- Watch Out For…
- 2:1 2-to-1 2/1 2.
- Gross profit = Net sales minus the costs of goods sold.
- Operating profit = Gross profit minus selling and administrative expenses.
- Net Profit = Operating profit (plus any other income) minus any additional expenses and minus taxes.
- Doobie Company Income Statement.
- Gross Profit Margin Ratio.

What is the formula of profit%?

**Formula**: Loss = Cost price (C.P.) – Selling Price (S.P.) **Profit** or Loss is always calculated on the cost price. Marked price: This is the price marked as the selling price on an article, also known as the listed price.