How to measure profits and why it matters

Low-cost production and improving gross margin per unit are important if wanting to make a profit in the cattle business. In his most recent column, Alan Newport explores various measures of profitability and why they matter. 

April 28, 2015

1 Min Read
How to measure profits and why it matters

We tend to get our understanding of profit measurements confused. At least I do.

Last week, I had lunch and a good conversation with my old friend Jay Franklin, a no-till farmer from Vinita, Okla., who has always been an economist at heart and, for several years now, a banker, too.

I was lamenting the change in business attitudes in corporate America, how 10% was once considered a good return but now most companies want 20-30%.

Jay asked me if I was confusing return on investment with return on equity.

To read Newport's entire column, click here.


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