Product Profit Margin

Which Products are in the black?

Description

This metric shows for a given product how large a share of the revenues, after deducting operating costs, is left as profit. Products with higher margins are more profitable since they either produce more revenues or require fewer resources (produce lower costs) given the same revenue level. Lower margin implies that the product either consumes more resources (higher costs) or generates lower revenues.

Motivation

Which products are the most profitable, and what is their profitability trajectory? Cutting costs early on poorly performing products or increasing strategic focus on promising products is key to sustained profitability.

Trend chart

Metric Trend Chart

In the OKR goal-setting methodology, metrics are preferably used as part of a Key Result.

There are hundreds of metrics in the Agile Tools ever-growing library.