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Is your dental practice a profitable business?
1Department of Rehabilitative Dental Science, Faculty of Dentistry, University of Manitoba.
Journal (Canadian Dental Association)
|December 1, 1990
Abstract:
Many dentists are unaware whether their dental practices are profitable businesses. A method to assess dental practice profitability, by determining percentage return on investment (% ROI), is described. The method involves analyzing and adjusting prepared financial statements for a practice, estimating the fair market value of the practitioner's professional and managerial efforts in the practice, and estimating the fair market value of the practice assets. Interpretation of the % ROI determination is discussed.