Money & finance · framework worksheet
Profit ratio snapshot
“Am I profitable, or just busy?”
Three numbers tell the truth about profitability: gross margin, net margin, and return on the capital you've employed.
step 1
Gross margin % = (revenue − direct costs) ÷ revenue. Write yours for the last year.
step 2
Net margin % = profit after everything ÷ revenue. Write yours.
step 3
Return on capital % = operating profit ÷ total capital employed. Write yours.
step 4
Compare: does your return on capital beat a bank FD? If not, the business is consuming wealth, not creating it. What changes?
0/4 steps filled
Fill every step, then save. Half-done frameworks produce half-done businesses.