HE: Report Definitions: Path to Profitability

This section defines the key metrics and calculations used in the Path to Profitability report to measure daily profit contribution.
 

The Context This report is found under Reports > Path to Profitability. It is designed to help managers identify which days are profitable (contributing to GOP) and which days labor costs exceed revenue.
 

The Data

Metric	Definition	Calculation Logic
Total Revenue	All revenue streams reported into the system (Rooms, F&B, etc.).	Actuals (Yesterday & Past) or Forecast (Today & Future).
Total Labor	All gross wages included in labor reporting (can include contract labor).	Actual Punches (Past) or Scheduled Shifts (Future).
Employer Taxes	Estimated payroll tax burden.	Calculated as 8% of Gross Wages.
Benefits	Estimated cost of employee benefits.	Calculated as 12% of Gross Wages.
Revenue vs. Labor	The profit remaining after labor costs are deducted.	Total Revenue - (Total Labor + Taxes + Benefits).
Profit Contribution	Indicator of whether the day helped or hurt Gross Operating Profit.	Positive Value = Contribution to GOP <br> Negative Value = Loss.

Limits

• Date Range: The report typically provides a 14-day view (past 7 days and future 6 days) to show trends.
• Fixed Costs: This report only considers labor expenses. It does not deduct other variable expenses (utilities, COGS), so "Revenue vs Labor" is a leading indicator, not a final Net Income number.