Profitability Analysis
Deep-dive into margins, cost structure, break-even, and what-if scenarios
Overall Profitability Score
62.4%
Gross Margin
+1.8% vs last year
28.1%
Operating Margin
+2.3% vs last year
18.7%
Net Margin
+0.9% vs last year
34.2%
EBITDA Margin
-0.4% vs last year
Cost Structure Analysis
Revenue: $4.2M| Category | Amount | % Rev |
|---|---|---|
| COGS | $1,579K | 37.6% |
| Payroll | $840K | 20.0% |
| Rent & Facilities | $252K | 6.0% |
| Marketing | $210K | 5.0% |
| Tech & Software | $126K | 3.0% |
| Other Operating | $168K | 4.0% |
| Total Expenses | $3,175K | 75.6% |
| Net Income | $785K | 18.7% |
Product / Service Line Profitability
Break-Even Analysis
$2.56M
Break-Even Revenue
4,267
Break-Even Units
$600
Avg Unit Price
64.1%
Margin of Safety
Industry Benchmark Comparison
| Metric | Your Company | Industry Avg | Top Quartile | Status |
|---|---|---|---|---|
| Gross Margin | 62.4% | 55.0% | 68.0% | Above Avg |
| Operating Margin | 28.1% | 22.0% | 30.0% | Above Avg |
| Net Margin | 18.7% | 15.0% | 22.0% | Above Avg |
| EBITDA Margin | 34.2% | 30.0% | 38.0% | Above Avg |
| Revenue per Employee | $175K | $190K | $240K | Below Avg |
| Operating Expense Ratio | 34.3% | 33.0% | 28.0% | Near Avg |
| Return on Assets | 12.8% | 10.0% | 15.0% | Above Avg |
What-If Scenario
Projected Net Margin
18.7%
Projected Revenue
$4,200K
Projected Net Income
$785K
Margin Trends (12 mo)
Recommendations
High
Optimize COGS
Renegotiate supplier contracts to reduce COGS by 3-5%. Potential margin improvement of +$126K annually.
Med
Improve Revenue per Employee
Currently below industry average. Invest in automation and training to boost productivity.
Low
Pricing Strategy Review
A 5% price increase on premium services could boost net margin by 2.1 percentage points.
Low
Reduce Facility Costs
Consider hybrid work model to lower rent expense from 6% to 4% of revenue.