Working out your profit margins in Power BI with a basic data set can seem like it requires a few steps. Maybe you think you need to use calculated columns to get the result. Well, you certainly don’t need to do that – there is a much simpler way.
Using measures, you can start with simple information like price and costs, and then via ‘measure branching’, you can work your way up to a profit margin figure that can be filtered by anything in your data model.
The key takeaway here is not actually how to exactly work out profit margins, but about how we get there. The layering of measures on top of each other allows you to create these branches. They can produce quite complex results, but your formulas remain relatively simple as you step through to the end number.
There are so many ways you can use this – not only with the profit margin number, but also with aspects like percentage growth, time comparison results, and much more.
I’m a big fan of starting with your simple core measures like sales or costs and then working your way up to calculations that branch out from there. It’s certainly the best way to develop your models and makes bringing in more advanced techniques like time intelligence and scenarios analysis that much easier.
Check out this video to learn much more.