PROFIT, BILLING AND PROFITABILITY: CONCEPTS AND DIFFERENCES

 Despite being commonly associated as synonyms, the words invoicing and monetization do not have the same meaning. Most authors tend to present the concepts of profitability and monetization, as a comparison between a company's profits and its sales revenue. Revenue is the "total sum of a company's sales", in a certain period, from its commercial activity. In that sense, billing is one of the main indicators used to measure the size of a business. Unlike billing, which is all the money that
goes into a company, profit is all the money that is left after deducting all expenses and costs.

Profitability is as a vital force for the organisation and it is the expression of the economic result which is the company-wide goal. Profitability is a
operational efficiency indicator that indicates what is the gain that the company manages to generate. The greater the profitability and turnover, the better the profitability of the company and the shareholders.

Considering that profitability also measures efficiency, it is also understood as the measure of financial return on an investment

Profitability, also expressed as the rate of return, is the profit to investment ratio. Determining the return on investment lets is see if it was consistent
with what had been planned. From the analysis of this indicator, it is possible to assess the organization's final performance, in addition to making it possible to analyse the causes of the problems about profitability. Based on the present considerations, it is important to know the main profitability indexes, since they provide the analyst with an assessment of the company's earnings.