A profitability report provides detailed information and analysis of financial performance, specifically focusing on how profitable the company’s projects, services, and teams/delivery are
Managers can find information about Gross Profit Margin, associate and total utilization and so on.
| ℹ️ The following permissions are needed there: View Profitability report |
Here’s what the profitability report includes.
General overview of company profitability for the period
Total members — amount of members with billable category of assignment per period.
Total planned hours — planned hours of all members.
Total actual hours — approved logged hours of all members.
Average utilization — the utilization rate averaged across all associates with billable assignments per selected period.
Average GPM, % — margin averaged over all billable projects for the period and selected parameters in the filters. It’s calculated with a formula:
GPM (n) = ((External rates * Actual hours – Internal rates * Planned hours) / (External rates * Actual hours)) * 100%
where
External rates * Actual hours = (External rate member 1 * actual hours member 1 + External rate member 2 * actual hours member 2 + … + n)
Internal rates * Planned hours = (Internal rate member 1 * planned hours member 1 + Internal rate member 2 * planned hours member 2 + … + n)
Detailed information
Only projects with billable category of assignment are displayed there. In order to view billable category + internal, you need to turn on toggle Internal assignments.
| Column name | Description | Calculation formula |
|---|---|---|
| Projects | List of projects for the period and that selected in the corresponding filter. | – |
| Planned hours | Planned hours are the amount of expected working hours for the selected period according to the project assignment hours and planned overtime. The holidays and weekends are excluded from planned hours. If you need to exclude vacations and sick leaves from the calculation, turn off the corresponding toggle. | Company working days in assigned on Project period * Assigned hours per day on Project (in Availability: assignments with billable category). |
| Actual hours | Actual hours are the amount of hours logged by the Associate during the specified period for the relevant project. Only approved hours are calculated there. Actual hours can be checked on Time tracking page in HRM. | Total logged hours per Project 1+ Total logged hours per Project 2 +…. |
| Internal hourly rate | An internal rate is the salary or hourly rate used to calculate an associate’s pay. It is specified in ERP Members->Rate. | (Internal rate 1 * planned hours in assignment 1 in Interval 1 + Internal rate 1 * planned hours in assignment 2 in Interval 1 + {…} + Internal rate 2 * planned hours in assignment 1 in Interval 2 + Internal rate 1 * planned hours in assignment 2 in Interval 2 + {…}) / Total Planned hours in Intervals (1+2+ ..) |
| External hourly rate | An External rate is an hourly rate that an external client pays for the provided type of service. This rate is specified in the associate assignment. If Associate has different rates for the selected period within assignments, the average value is displayed. | (External rate for Project 1 * Actual hours for Project 1 in Interval + External rate for Project 2 * Actual hours for Project 2 in Interval + {…}) / Total Actual hours in Interval |
| Utilization | Utilization is the percentage of billable hours worked by Associate versus their total available hours | (Actual hours / Planned hours) *100 |
| GPM, % | This measures the difference between revenue and direct costs. GPM is equal to 0 for internal projects. | ((External rates * Actual hours – Internal rates * Planned hours) / (External rates * Actual hours)) * 100 |