How to Compute a Gross Profit in Trucking Services

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Fixed Costs

Fixed costs are expenses that your company incurs whether your trucks are hauling a load or are in the parking lot. Fixed costs include expenses like insurance, property leases, permits and other services.

In the chart below, the fictional company Solid’s Trucks Inc. calculates fixed costs by the mile for the month of August. The chart divides each fixed cost by the 10,000 miles that Solid’s Trucks drove that month:

Solid’s Trucks Fixed Costs for August

  Monthly Cost Per-Mile Cost

Truck Payment $1,200 $0.12

Collision/Comp Insurance $600 $0.06

Office Lease $1,000 $0.1

Health Insurance $420 $0.042

Permits $350 $0.035

Total Fixed Costs $3,570 $0.357

Variable Costs

Variable costs are the money that your company spends in operating its trucks. These costs include fuel, maintenance, repairs, meals, lodging and other expenses incurred on the road. Variable costs can range greatly from one time period to the next. As you put more mileage on your trucks, you will see the variable costs increase. You should calculate these costs monthly to get the most up-to-date information on how much your company is spending.

Here is how Solid’s Trucks calculated variable costs. Again, the costs are divided by the 10,000 miles the company drove in August.

Solid’s Trucks Variable Costs for August

  Monthly Cost Per-Mile Cost

Fuel $1,700 $0.17

Tires $300 $0.03

Regular Maintenance $450 $0.045

Repairs $560 $0.056

Lodging/Meals $380 $0.038

Taxes $275 $0.0275

Total Variable Costs $3,665 $0.3665

Salary

The amount you pay your drivers is likely your single biggest expense. It needs to be part of your calculation of cost-per-mile. Here is what it looked like for Solid’s Trucks in August:

  Monthly Cost Per-Mile Cost

Drivers’ Salaries $3,750 $0.375

Total Cost per Mile

To determine the total monthly cost per mile, simply add the fixed, variable and salary costs. Here is the total cost per mile for the fictional Solid’s Trucks in the month of August:

Cost Per Mile  

Fixed Costs $0.357

Variable Costs $0.3665

Driver Salaries $0.375

Total Cost $1.098

Knowing your trucking company’s cost per mile benefits you in many ways. It helps identify spending patterns and areas where you can cut back if needed. Cost per mile also allows you to determine an appropriate per-mile rate to charge shippers. Knowing your company’s operating expenses on a per-mile basis gives you the information needed to be profitable.

If your cost per mile seems high, one solution is to take on more work. Not only will this increase revenue, but your cost per mile should decrease. While your variable costs may increase from taking on more work, the fixed costs will remain the same. Here is a fictional illustration of how increased mileage can decrease the cost per mile:

Miles Cost Per Mile

10,000 $1.09

15,000 $0.95

20,000 $0.85

Revenue and Profit Per Mile

To see how cost per mile relates to your company’s income and profitability, refer to our article, How to Calculate Revenue and Profit per Mile.

How to Calculate Revenue and Profit per Mile

There is a proven formula for determining if a load will generate a net profit for your trucking company.

Profit-Per-Mile Spreadsheet

Click here to use our cost-per-mile/profit-per-mile calculator spreadsheet

Your company needs to make money. That's a given. Determining profitability for trucking companies, however, can be a complicated process. As your company grows, it becomes crucial to regularly track how much money is coming in and how much is going out. Calculating revenue and profit per mile is the key to understanding your company’s overall financial health.

Your first step is to carefully track your expenses. You can learn more on how to do that by reading our article, “How to Calculate Cost per Mile for Your Trucking Company.” Once you have a handle on cost per mile, you can examine your company’s revenue. Subtracting cost per mile from revenue per mile will determine the net profit (or loss) of every mile your trucks drive. Accounting software such as QuickBooks, FreshBooks and Xero can help you make these calculations for less than $20 per month. If you have specific questions about calculating revenue and profit per mile for your company, it is also a good idea to consult a certified public accountant.

The following sections use fictional charts to illustrate revenue and profit per mile. These charts serve as examples that may not reflect all your company’s income and profitability. The final section addresses how you can use this information to build a sustainable, growing business.

Revenue per Mile

Revenue per mile determines how much money your company is generating for the services it provides.

In the chart below, the fictional company Solid’s Trucks Inc. calculates revenue by the mile for the month of August. The chart divides the revenue by the 10,000 miles Solid’s Trucks drove that month:

Solid’s Trucks Revenue for August

Monthly Revenue Miles Driven Per-Mile Revenue

$13,500 10,000 $1.35

Profit per Mile

In our article examining cost per mile, Solid’s Trucks added all of its fixed costs, variable costs and salary expenses for August. That added up to a total cost per mile of $1.098 for the month. To determine the company’s profit per mile, subtract the cost per mile from the revenue per mile:

Revenue ($1.35 per mile) – Cost ($1.098 per mile) = Profit ($0.25 per mile)

In the month of August, Solid’s Trucks posted a per-mile profit of 25 cents. That amounts to a healthy 19% profit margin on the $1.35 per mile in revenue.

How This Helps Your Business

Knowledge is power in the fast-changing trucking industry. You need to identify what markets to serve and which lanes that will generate the most revenue. It is equally crucial to know how much money your trucking company needs to charge in order to post a profit. Understanding how to calculate cost, revenue and profit per mile arms you with information you need to successfully negotiate rates with shippers and brokers.

While the example of Solid’s Trucks focuses only on the month of August, you need to know your company’s financial position over the course of several months. Industry factors like seasonal demand, weather conditions, fluctuating fuel prices and deadheading miles all need to be taken into account. For example, your company might have operated at a loss in January and February due to maintenance costs and severe weather. That means you need to adjust your rates for the summer months to ensure your company makes up for those losses.

There are several aspects to financial management for your trucking company. It all starts with knowing what it takes to be profitable. Calculating cost, revenue and profit per mile is a key step to putting your trucking company on the road to success.

Basic Accounting For Trucking Companies

You do not need to be a financial wizard to run a successful business but understanding the basics of accounting is definitely important.

No matter your fleet size or how long you have been in business, it is crucial to understand basic accounting terms and financial documents. Accounting explains your company’s financial history, health and overall performance. Without a good understanding of this information, you won’t know if you are succeeding or failing. That limits your ability to make informed decisions, operate effectively and position your company for future growth.

Common Terms

To get started, here are a few basic accounting terms and definitions:

Assets

 An asset is something of value that your company owns and can be converted into cash. This can include current assets such as accounts receivable, inventory and available cash. It also includes fixed assets like real estate, buildings and equipment.

Liabilities 

Liabilities are the debts and obligations of your business. They can include money owed on a loan, accounts payable, employee wages or taxes.

Equity 

Equity is your ownership interest in the business. In accounting, equity is calculated when a company’s liabilities are subtracted from its assets. Whatever remains from that calculation is your equity. When liabilities are larger than assets, negative equity exists.

Revenue and Gains 

Revenue is the amount of money that a company receives over a given period of time for the services it provides. On an income statement, revenue is also known as top line or gross revenue. Gains are one-time increases in revenue that are not part of a company’s regular operations. Some examples of gains include the sale of equipment or real estate.

Expenses and Losses 

Expenses are what it costs the company to perform its main operations. Losses are one-time transactions in which the company sells an asset for less than the amount it spent to acquire the asset.

Financial Statements

Understanding financial management involves some familiarity with financial statements. The three most common documents that companies use to gauge their financial health and performance are the balance sheet, the income statement and the cash flow statement.

A balance sheet is a snapshot of your company’s financial standing at any given point in time. It measures the relationship among assets, liabilities and equity. It also calculates your company’s debt load and overall financial health.

Solid’s Trucking Company: Balance Sheet, January 1, 2020

ASSETS

Cash $900

Accounts Receivable $1,400

Equipment $6,000

Real Estate $10,000

Total Assets $18,300 

LIABILITIES

Notes Payable $1,200

Accounts Payable $600

Accrued Wages $800

Total Liabilities $2,600 

OWNER'S EQUITY

Kevin Smith $15,700

Total Liabilities/Owner's Equity $18,300

The income statement shows how money flows through the company over a period of time. It measures sales against costs. Unlike the balance sheet, the income statement covers a certain time period (usually a month, a quarter, or a year).

Solid’s Trucking Company: Income Statement 2019

REVENUES AND GAINS

Revenues $50,000

Gain on Sale of Equipment $5,000

Total $55,000 

EXPENSES AND LOSSES

Expenses $40,000

Loss on Sale of Equipment $500

Total $40,500 

Net Income $14,500

A cash flow statement shows how much actual cash the company has on hand. It also projects future cash flow. This is an important statement for small businesses and entrepreneurs because it shows a company’s day-to-day financial health. While the income statement shows how your company performed in the past, the cash flow statement shows how cash is being generated or used. A company can show a profit on its income statement, yet still go out of business because of a temporary negative cash flow.

Solid’s Trucking Company: Cash Flow Statement, January 2020

OPERATING CASH FLOW

Net Income $14,500

Depreciation $1,000

Gain on Sale ($4,500)

Change in Receivables $1,000

Operating Cash Flow $12,000 

INVESTING CASH FLOW

Proceeds on Equipment Sales $6,000

Equipment Purchases ($600)

Investing Cash Flow $5,400 

FINANCING CASH FLOW

Payments on Loans ($7,000)

Distributions to Owner ($4,000)

Financing Cash Flow ($11,000) 

NET CASH FLOW

Operating Cash Flow $12,000

Investing Cash Flow $5,400

Financing Cash Flow ($11,000)

Net Cash Flow $6,400

Using Accounting Software

Using software for accounting can help you manage the different components you need to determine the financial well-being of your company. For smaller or growing companies, it may allow you to operate without needing an in-house accounting department or accounting personnel.

World Bank Raises Philippine Growth Outlook to 6 Percent

 

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The World Bank has recently updated its economic outlook for the Philippines, raising the growth forecast for 2023 to 6 percent. This move comes amid a changing global landscape and the country's robust economic performance in the first three quarters of 2022. In this article, we'll delve into the factors contributing to this revised outlook, the challenges the Philippines faces in sustaining its growth momentum, and the recommendations made by the World Bank to ensure continued economic progress.

Overview of the Philippine Economy

The Philippine economy has shown remarkable resilience in recent years, bouncing back from the adverse effects of the COVID-19 pandemic. The country is on track to meet its 6.5%-7.5% growth target for 2022, with economic output averaging 7.7% in the nine months to September. This strong performance can be attributed to the government's decision to lift nearly all COVID-19 restrictions and allow more business activities to resume.

However, the World Bank expects the pace of expansion to slow down in 2023, with growth forecasted at 6 percent. This is due to a combination of factors, including soaring inflation, higher interest rates, and reduced consumer demand.

Inflation and Interest Rates

The Philippines, like many other countries, is grappling with inflation, which surged to a 14-year high in November. This increase in inflation has put pressure on the country's central bank to tighten monetary policy. The World Bank's outlook for 2023 is premised on high inflation and interest rates, which are expected to temper household spending and investments.

Reduced Consumer Demand

Another factor contributing to the slower growth forecast for 2023 is reduced consumer demand. The World Bank believes that the combination of high inflation and interest rates will result in decreased household spending and investments. This, in turn, will impact the overall growth of the Philippine economy.

Regional Economic Performance

The revised growth outlook for the Philippines reflects the general trend among large developing economies in East Asia and the Pacific. According to the World Bank, while economic performance across the region is robust, it could be held back this year by slowing global growth, elevated commodity prices, and tightening financial conditions in response to persistent inflation.

Nevertheless, growth across the region is forecasted to accelerate to 5.1 percent in 2023, up from 3.5 percent in 2022, thanks to the reopening and rebound of China's economy. Among the larger economies in the region, most—including Indonesia, the Philippines, and Vietnam—are anticipated to grow more modestly in 2023 than in 2022.

Navigating a Changed Global Landscape

Manuela Ferro, World Bank Vice President for East Asia and the Pacific region, highlighted the current challenges faced by major economies in the area. She said, "Most major economies of East Asia and the Pacific have come through the difficulties of the pandemic but must now navigate a changed global landscape."

Ferro emphasized the need for these economies to adapt to the new financial environment and overcome the hurdles posed by inflation, supply chain disruptions, and other global factors.

Recommendations from the World Bank

To safeguard growth and mitigate the impact of high inflation, the World Bank has offered several recommendations for the Philippines. These include:

Maintaining Fiscal Discipline

It is crucial for the country to maintain a sound fiscal position in order to ensure economic stability and growth. The government should continue to prioritize fiscal discipline and responsible spending, especially during uncertain economic times.

Investing in Health, Education, and Agriculture

The World Bank also recommends continued investment in health, education, and agriculture sectors to boost productivity. These areas are essential for the long-term development of the country and will contribute significantly to the nation's overall economic growth.

Addressing Supply Chain Challenges

In light of the ongoing global supply chain disruptions, the Philippines should take steps to address these challenges and ensure the smooth flow of goods and services within the country. This may involve investing in infrastructure, streamlining processes, and enhancing cooperation with regional partners.

Conclusion

In conclusion, the World Bank's revised growth outlook for the Philippines in 2023 is a testament to the country's robust economic performance. While challenges such as inflation, interest rates, and reduced consumer demand may contribute to a slower growth rate, the government's commitment to fiscal discipline, investment in key sectors, and addressing supply chain issues can help the Philippines navigate the changing global landscape and sustain its economic momentum.

By implementing the recommendations put forth by the World Bank, the Philippines can continue on its path towards economic growth and prosperity, ensuring a brighter future for its citizens.

Decodificando o Mistério da Numerologia: Compreendendo o Poder dos Números

 

Decodificando o Mistério da Numerologia: Compreendendo o Poder dos Números

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‍Numerologia é um assunto intrigante e misterioso que tem fascinado pessoas há séculos. A ideia de que números podem ter um impacto significativo em nossas vidas é fascinante e pode ser explorada através da numerologia. Neste artigo, vamos explorar o mundo da numerologia e entender como os números podem ser usados para obter insights sobre nossas vidas e personalidades.

Introdução à Numerologia: O que é e como funciona?

Numerologia é a crença de que os números têm um significado especial e podem ser usados para obter insights sobre as coisas ao nosso redor. A ideia é que cada número tem uma vibração e energia única, e que podemos usar essas vibrações para entender melhor o mundo ao nosso redor e a nós mesmos.

Na numerologia, cada número é atribuído a uma letra do alfabeto, e esses números podem ser usados para decifrar significados ocultos em palavras e frases. A numerologia também é usada para calcular o número de vida, que é um número importante que pode revelar informações sobre a personalidade e o propósito de vida de uma pessoa.

A importância dos números na numerologia

Na numerologia, cada número tem um significado especial e pode ser usado para obter insights sobre diferentes aspectos da vida. Por exemplo, o número 1 é associado à liderança e independência, enquanto o número 2 é associado à parceria e equilíbrio. Os números também são usados para calcular o número da vida, que é um número importante na numerologia.

O número da vida é calculado a partir da data de nascimento de uma pessoa e pode ser usado para obter informações sobre a personalidade e o propósito de vida de uma pessoa. Na numerologia, os números também são usados para decifrar significados ocultos em palavras e frases, o que pode ser útil no entendimento de diferentes aspectos da vida.

Compreendendo os números do caminho da vida e sua importância

O número do caminho de vida é um número importante na numerologia e é calculado a partir da data de nascimento de uma pessoa. Ele pode ser usado para obter informações sobre a personalidade e o propósito de vida de uma pessoa. O número do caminho de vida é um número de um dígito que é calculado somando os dígitos da data de nascimento de uma pessoa.

Por exemplo, se alguém nasceu em 10 de janeiro de 1990, seu número do caminho de vida seria calculado somando 1 + 0 + 0 + 1 + 1 + 9 + 9 + 0 = 21, e depois somando 2 + 1 = 3. Portanto, o número do caminho de vida dessa pessoa seria 3.

Calculando o seu número do caminho de vida

Calcular o número do caminho de vida é fácil e pode ser feito em alguns passos simples. Primeiro, escreva sua data de nascimento em números (mês/dia/ano). Em seguida, some todos os dígitos da data de nascimento juntos. Por exemplo, se você nasceu em 10 de janeiro de 1990, você somaria 1 + 0 + 1 + 1 + 9 + 9 + 0 = 21.

Se o número total for um número de dois dígitos, some os dígitos juntos. Por exemplo, se o total for 34, some 3 + 4 = 7. Se o total for um número de um dígito, esse é o seu número do caminho de vida. Se o total for um número de dois dígitos, some os dígitos novamente. Por exemplo, se o total for 34, some 3 + 4 = 7. Seu número do caminho de vida é 7.

Decifrando seu gráfico de numerologia

O gráfico de numerologia é uma ferramenta útil na numerologia que pode ser usada para decifrar informações sobre a personalidade e o propósito de vida de uma pessoa. O gráfico de numerologia é baseado no alfabeto e em números, e cada letra é atribuída a um número.

Para decifrar seu gráfico de numerologia, você precisará do seu nome completo e data de nascimento. Cada letra do seu nome é atribuída a um número, e esses números são somados para obter um número total.

Depois que você tiver o número total do seu nome, ele pode ser usado para decifrar informações sobre sua personalidade e propósito de vida.

Os diferentes tipos de gráficos de numerologia

Existem vários tipos diferentes de gráficos de numerologia, cada um com seu próprio conjunto de informações. O gráfico de numerologia mais comum é o gráfico de número de vida, que é usado para obter informações sobre a personalidade e o propósito de vida de uma pessoa.

Outros tipos de gráficos de numerologia incluem o gráfico de expressão, que é usado para obter informações sobre habilidades e talentos, e o gráfico de coração, que é usado para obter informações sobre relacionamentos e emoções.

Os benefícios de conhecer o seu número do caminho de vida e gráfico de numerologia

Conhecer o seu número do caminho de vida e gráfico de numerologia pode ser incrivelmente útil na compreensão de si mesmo e dos outros. Essas ferramentas podem ser usadas para obter insights sobre a personalidade, propósito de vida, habilidades e talentos de uma pessoa.

Conhecer o seu número do caminho de vida e gráfico de numerologia também pode ser útil na tomada de decisões importantes, como escolher uma carreira ou parceiro de vida.

Usando a numerologia para o crescimento pessoal e autoconsciência

A numerologia pode ser usada para ajudar no crescimento pessoal e autoconsciência. Conhecer o seu número do caminho de vida e gráfico de numerologia pode ajudá-lo a identificar seus pontos fortes e fracos, bem como seus talentos e habilidades.

Com essas informações, você pode trabalhar para desenvolver suas habilidades e talentos e superar seus desafios e fraquezas.

Aplicando a numerologia às relações e escolhas de carreira

A numerologia pode ser usada para ajudar nas escolhas de carreira e relacionamentos. Conhecer o seu número do caminho de vida e gráfico de numerologia pode ajudá-lo a identificar as carreiras e relacionamentos que são mais adequados para você.

Por exemplo, se você tem um número do caminho de vida 3, pode ser mais adequado para carreiras criativas e relacionamentos que enfatizem a comunicação e a expressão.

Desmistificando os equívocos comuns sobre a numerologia

Existem muitos equívocos comuns sobre a numerologia, incluindo a ideia de que é uma forma de adivinhação ou que pode prever o futuro. Na realidade, a numerologia é uma ferramenta para obter insights sobre a personalidade e o propósito de vida de uma pessoa, mas não pode prever o futuro.

Onde encontrar recursos confiáveis de numerologia

Existem muitos recursos disponíveis para aprender mais sobre a numerologia, incluindo livros, sites e aplicativos. É importante encontrar recursos confiáveis e respeitáveis para obter informações precisas e úteis.

Conclusão: Abraçando o poder da numerologia em sua vida

A numerologia pode ser uma ferramenta poderosa para obter insights sobre sua personalidade, propósito de vida e escolhas de carreira e relacionamento. Ao compreender o seu número do caminho de vida e gráfico de numerologia, você pode trabalhar no desenvolvimento de suas habilidades e talentos e superar seus desafios e fraquezas. Com o conhecimento da numerologia, você pode tomar decisões mais informadas e viver uma vida mais consciente e satisfatória.

CTA: Experimente calcular o seu número do caminho de vida e decifrar o seu gráfico de numerologia para obter insights sobre a sua personalidade e propósito de vida. Em seguida, use essas informações para trabalhar no desenvolvimento de suas habilidades e talentos e tomar decisões mais informadas sobre sua carreira e relacionamentos.