How to Measure Profitability vs Profit in a Business

businessman and businesswoman looking at a graph on a screen

Profit and profitability are two separate concepts. Here’s how they differ and how to start measuring. Key takeaways: Profitability is a metric that tells you if your business is viable, and it’s a measurement used by investors Profit is the dollar amount of net earnings in a given period Measure profitability by assessing gross and…

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