Is your dental practice a profitable business?

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.