How Net Income, EBITDA, and service-line margins are calculated in the SAPTCO demo.
Margin analysis is the core of the SAPTCO profitability module. Understanding how each metric is calculated helps you interpret company and service-line performance correctly.
Net Income = Total Revenue − Total Allocated Costs. 'Total Allocated Costs' includes direct costs (COGS), SG&A operating expenses, and overhead allocated to the entity. This is the bottom-line number shown on the Overview dashboard and in BoD Reports.
Gross Profit = Revenue − Direct Costs (COGS only). Contribution Margin = Revenue − Variable Costs. These appear in the Department Profitability table and help you understand which departments cover their direct costs before overhead is applied.
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization. In this demo, EBITDA is derived from SAPTCO revenue, direct fleet costs, indirect costs, and depreciation loaded in the local source model.
Every KPI card shows a variance indicator. 'vs Budget' compares actual results to the pre-loaded budget targets for the same period. 'vs Last Year' compares to the same period in the prior year. A green indicator means you are ahead; red means behind. The percentage shown is (Actual − Baseline) / |Baseline|.
A SAPTCO service line with a negative Net Margin is not necessarily performing poorly. It may carry shared fleet overhead or fixed costs that are offset elsewhere. Always look at Contribution Margin first to understand whether the service line covers its direct costs before overhead allocation.
Use the Department Profitability table (Profit tab) to rank departments by margin percentage — this quickly surfaces which units need attention.
When comparing periods, make sure the date ranges are equivalent (e.g., both full quarters) to avoid distortion from partial-period data.
If a margin looks unusually high or low, check whether the entity filter is set correctly — a single-facility view will show different margins than the consolidated view.