---
title: "What Is Practice profitability? Dental Practice Glossary"
description: "Practice profitability is how much money remains for the owner and the business after all costs are paid, shown by the income statement as profit or loss for a..."
url: https://joncopeland.multisites.ai/glossary/practice-profitability
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Finance and valuation

# Practice profitability

Practice profitability is how much money remains for the owner and the business after all costs are paid, shown by the income statement as profit or loss for a period.

A new-dentist blog from the ADA states that an income statement measures patient collections (sales), expenses and profit or loss over the reporting period. That makes the income statement the first place to look at profitability. Profit depends on [collections](https://joncopeland.multisites.ai/glossary/collections), [overhead](https://joncopeland.multisites.ai/glossary/overhead) and how much the owner takes as pay, so it can change without any change in production. The ADA's Guidelines for Practice Success also note that many businesses raise prices on a regular basis, typically to meet a specific profit margin. Owners can see the trend by comparing statements across periods. A CPA can help read them. See [profit margin](https://joncopeland.multisites.ai/glossary/profit-margin).

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Profit margin](https://joncopeland.multisites.ai/glossary/profit-margin)
-   [Overhead](https://joncopeland.multisites.ai/glossary/overhead)
-   [Profit and loss statement](https://joncopeland.multisites.ai/glossary/profit-and-loss-statement)
-   [Owner compensation](https://joncopeland.multisites.ai/glossary/owner-compensation)

## Sources

1.  [ADA New Dentist Blog, Make sure your business plan includes these 5 financial elements](https://newdentistblog.ada.org/make-sure-your-business-plan-includes-these-5-financial-elements/)
2.  [ADA, Six Ways to Strengthen Your Practices Bottom Line](https://www.ada.org/resources/practice/practice-management/finances/six-habits-of-financially-secure-practices)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)