4 ways to measure profitability and grow your business

4 ways to measure profitability and grow your business | Seth David @Nerd Enterprises, Inc.

Learn more about measuring profitability and growth: https://intuit.me/2WVyxaj Evaluating your bottom line goes beyond how much money is in your bank account. It requires an accurate analysis of business activities to gain an insightful look at your business profitability. In fact, a profitable business can still go under if cash flow is not good. So we need to look at both profits and cash flow. In this video, Seth David (@Nerd Enterprises, Inc.) illustrates 4 ways to measure profitability margin ratios, break-even analysis, ROA (Return on assets) calculation, and ROI (Return on investments) calculation. Watch for actionable tips on how to increase your business profitability. 00:00 - Introduction 01:07 - What is profitability? 01:32 - How to measure profitability 02:03 - How to calculate the gross profit margin ratio 02:35 - How to calculate the operating profit margin ratio 03:00 - How to calculate the net profit margin ratio 03:27 - What is the break-even point? 03:57 - How to calculate the break-even point: BEP formula 04:21 - Return on assets (ROA) vs. return on investment (ROI) 05:25 - Ways to improve profitability   This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them. Click for the latest updates...