Whilst cash is vital in the short-term, profitability is vital in the medium-term.

The two
key percentage figures are the gross profit percentage and the net profit percentage. Gross
profit is calculated by deducting the cost of materials and direct labour from the sales
figures whilst net profit is arrived at after deducting all overheads. Possible reasons for
changes in the gross profit percentage are:
If net profit is deteriorating after the deduction of an appropriate reward for your