Profit Percentage as Function of Cost, Not Sale

[madmoneymike5]

In every other aspect of my life, a profit percentage (return on investment) is calculated by dividing your return (revenue minus cost) by your cost, not your sales. Could we get this as a toggleable option?

Thanks!

[Johnny5]

In every other aspect of my life, a profit percentage (return on investment) is calculated by dividing your return (revenue minus cost) by your cost, not your sales. Could we get this as a toggleable option?

Thanks!

I think you are referring to the Margin% field in the Order Item Edit dialog; suggesting there be a option to show ROI. ROI is generally thought of as the return from an investment, typically not applied to sales of individual goods. Gross Margin is associated with selling an item for profit; hence we chose to display 'Margin %'. The gross profit margin is a baseline profitability ratio measurement against total sales revenue; which must be maintained at a certain level to keep the doors open. This ratio measures how profitable a company sells its inventory or merchandise.

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[madmoneymike5]

You are correct about the area of the software I am thinking of. However, I'm not a MBA grad or the like, so I don't think in terms of gross profit margin. In my mind, the total amount I pay in parts, labor, and overhead is an investment. I want to make a certain return on that investment. At the end of the week, month, quarter, and year, I look at how much "investment" I made and how much return I got for it.