It is the relationship between the profits generated by a company and the cost or effort required to generate such profits.
The formula to determine the profitability of a company is as follows:
p is profitability.
p is the price.
c is the cost.
It should be taken into account that the profitability of a company can be optimized by adjusting each of these variants.
It is important to understand and analyze what leverage is, since it is a term that goes hand in hand with profitability, this element refers to debt, it shows whether it is better to acquire debt or use the money saved.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.