Total profitability
At first glance, profit seems like a simple concept. But spend a few minutes reviewing a profit and loss statement or your company’s other financial statements, and it’s clear that the concept of total profit might be a bit more complex than you originally thought. So, before we jump into how to calculate total profit for your small business, let’s quickly touch on what, exactly, total profit is. Your business brings in a certain amount of money each year; that’s what’s called your gross income. But it’s not like you get to pocket every dollar that flows into your small business. Every company has a variety of business expenses from paying your employees to marketing your business to general operating expenses—and those expenses will have an impact on your bottom line. Your total profit (or net profit) is how much money you have left over after you factor in all of your business expenses. In other words, it’s the percentage of your total revenue that you (and your business) get to keep [biz2credit].
Profitability is closely related to profit – but with one key difference. While profit is an absolute amount, profitability is a relative one. It is the metric used to determine the scope of a company's profit in relation to the size of the business. Profitability is a measurement of efficiency – and ultimately its success or failure. A further definition of profitability is a business's ability to produce a return on an investment based on its resources in comparison with an alternative investment. Although a company can realize a profit, this does not necessarily mean that the company is profitable [Investopedia].
What is the total profit? biz2credit. Retrieved from: https://www.biz2credit.com/blog/total-profit-formula-how-to-calculate-total-profit-for-a-business/
Definition of Profitability. Investopedia. Retrieved from: https://www.investopedia.com/ask/answers/012715/what-difference-between-profitability-and-profit.asp