Measures the profitability of individual product lines within a company.
What it Measures ?
Which product lines make us more money.
Relevant StakeHolders
Product Manager, Sales Head
In-depth Use Case / Real-world Example
Profitability by Product Line evaluates the profit margins generated by each product or product category. For example, if a company has ₹1,000,000 in sales from product A and ₹800,000 in costs, the profitability would be ₹200,000. Analyzing profitability by product line helps identify high-performing products and allocate resources efficiently.
KPI Definition
Business Value
Movement Direction
Sample Formula
(Revenue - Direct Costs) / Total Revenue by Product
By using this website, you agree to the storing of cookies on your device to enhance site navigation, and analyze site usage. View our Privacy Policy for more information.