Calculating profit margin

[Susan_Gertz]

I would like to calculate profit margin. I already have a formula field to calculate COGs. But, when I try to use the results of the COGS formula field in a new formula, it doesn’t work. Is that normal?

So, I tried this formula to bypass using a fiend in a formula that is itself the result of a formula. But I also cannot get this formula to work:

({LIST PRICE} - ((PRINT + MOUNT + SHIP) + (TIME * 25))) / {LIST PRICE}

Print, mount, ship, and time add up to my COGs, so I am trying to divide gross profit by list price to get profit margin. But it just returns a value of 1. The calculation is correct without the division by list price, as

{LIST PRICE} - ((PRINT + MOUNT + SHIP) + (TIME * 25))

Any suggestions?

[AlliAlosa]

This might be due to your formatting not being set correctly. The field is displaying an integer value, so it’s rounding up to one when the true value is actually a decimal.

When editing the formula, there is another tab that a lot of people don’t see, called “Formatting”.

Set the formatting to a percentage (assuming that’s what you want for your profit margin?), and then you’ll have options to set the precision for decimal points.

One last suggestion I might make… is to add an IF() statement to your formula to catch errors. If {LIST PRICE} is empty, you’ll be dividing by 0, which will create problems.

Try this…

IF({LIST PRICE}, ({LIST PRICE} - (({PRINT} + {MOUNT} + {SHIP} + (TIME * 25))) / {LIST PRICE})