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THE DIFFERENCE BETWEEN PROFITABILITY AND PROFIT

Are you a small business owner in Australia? Then you should definitely understand the terms related to business finances. Here in this presentation, you will find some points that will help you to understand all about profit and profitability. All the points mentioned here will help you to manage all the finances accordingly. Also, here you will find some terms related to margin ratio. Understand the way to calculate these values and grow your business without any hassle. You can also take help from professional bookkeepers of Melbourne city.

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THE DIFFERENCE BETWEEN PROFITABILITY AND PROFIT

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  1. 2 + 2 + THE DIFFERENCE BETWEEN PROFITABILITY AND PROFIT

  2. 2 + 2 + profit is the remaining income of the business after the expenses are subtracted from it. 

  3. 2 + 2 + And, profitability is a relative measure, such as percentage or decimals. 

  4. 2 + PROFIT MARGIN RATIO Profitability = Profit/Revenue x 100 The percentage of every dollar retained by the business. It displays that the business is performing well or not.

  5. 2 + GROSS MARGIN RATIO Gross Margin Ratio = Revenue – Cost of Goods Sold/ Revenue x 100 Used to assess the revenue retained by the business after deducting the cost of goods. The gross margin ratio only takes the stock into consideration.

  6. Consider all these points and adopt the latest trends to stay a head in this industry. 2 +

  7. 2 + 2 + Visit here for further details: https://www.agibookkeeping.com.au/the-difference-between-profitability-and-profit/ Or call us @0390880251

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