This is the KPI that many franchise manufacturers refer to when discussing levels of profitability within their dealer networks and it is often referred to as the company's bottom line. It is also known as Net Profit After Interest or Return on Sales.
Many business owners consider this to be one of the figures that holds the most importance, as it provides you with the profit you have retained as a percentage of the products and services that you have sold.
It is important to keep an eye on the trend of this KPI because a diminishing trend could indicate that you are working harder for a lower return, a condition otherwise known as busy fool syndrome.
Example:
A) N.P.B.T = R363,091 B) Company Turnover = R14,523,661 C) N.P.B.T. %Â = 2.5% (A ÷ B X 100)
Discussion:
There are no KPI measurements for profitability after taxation has been deducted, as the parameters and individual situations for taxation are different for every business.