Here's the point: Profitability is one key performance indicator and a very important one. In a sole proprietorship model, you don't count the proprietor's ea

Here's the point: Profitability is one key performance indicator and a very important one. In a sole proprietorship model, you don't count the proprietor's earnings into profit. In a corporate model you track executive compensation but this isn't really the same as tracking salaries since it could be on a minimal salary + bonus model. That doesn't mean it's the only metric. But it is probably the single most important one. It gives you an idea of whether a business can survive and meet its financial obligations in the face of unforeseen events. For a corporation of course equity ratio or debt to equity ratio are also important.