Professional Services Profitability Metrics Efficiency

Project Margin

Project Margin: Gross margin on individual projects.

Formula

Project Margin = (Project revenue - Project costs) / Project revenue × 100

Computable definition

The canonical formula in the GASP formula grammar. The MCP server compiles it to SQL over the datasets listed below.

(sum(field.project_revenue where in_period(field.project_completion_date)) - sum(field.project_cost where in_period(field.project_completion_date))) / sum(field.project_revenue where in_period(field.project_completion_date))

Unit: percent (the formula yields an unscaled ratio)

Notes: Margin on projects completed in the period.

Data requirements

Grain: Monthly aggregate · Frequency: Monthly · Aggregation: aggregate (month) · Staged: no · Main source: PSA.

Field	Dataset	Type
`project_completion_date`	project	date
`project_cost`	project	decimal
`project_revenue`	project	decimal
`snapshot_date`	project	date

Example SQL (Postgres)

SELECT (CAST(((SELECT COALESCE(SUM(project_revenue), 0) FROM project WHERE snapshot_date = :period_end AND (project_completion_date >= :period_start AND project_completion_date <= :period_end)) - (SELECT COALESCE(SUM(project_cost), 0) FROM project WHERE snapshot_date = :period_end AND (project_completion_date >= :period_start AND project_completion_date <= :period_end))) AS DOUBLE PRECISION) / NULLIF((SELECT COALESCE(SUM(project_revenue), 0) FROM project WHERE snapshot_date = :period_end AND (project_completion_date >= :period_start AND project_completion_date <= :period_end)), 0)) AS project_margin

From an agent: with the GASP MCP server, call lookup_metric({ "name": "Project Margin" }) or generate_query({ "metric": "Project Margin", "adapter": "<your adapter JSON>" }).

What It Tells You

Profitability by engagement, including which ones lose money.

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