Gross margin . This takes into account the difference between the cost of a product/service and the revenue for it. You can estimate the net profit.
Margin percentage . A measurement of how to add taiwan number on whatsapp the ratio of gross profit to revenue.
Product Margin: This is the gross profit margin of a particular product. This helps determine which products are more profitable and which are less profitable.
Service Margin. For each service, it determines the gross profitability.
Marginality ratio. You can calculate how much money is left after deducting all the costs that were associated with the production of the product.
Unit Margin: Measures the gross profitability of each product.
Selling Margin: A measurement of gross profitability for each sale.
If a company monitors these indicators, it will easily determine which products are more profitable, which are less profitable, and from which income comes more. With the help of these tools, it is possible to successfully regulate the marketing strategy and manage production costs with minimal losses.
Business Metrics Level
The main indicators that companies use to understand how effective a work process is are business metrics. Although their set may differ for each business, there are a number of basic ones that can be used by absolutely everyone.
Business Metrics Level
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Revenue . The total amount of money a company receives for selling services or goods over a certain period of time. All of the company's cash flows are taken into account for the calculation: discounts, services, sales volume, product cost, returns.
Retention . A metric that measures how often customers return to a product. There are several methods for measuring it. For example, in applications, the number of active users over a given period of time is counted.
Earnings Before Interest, Taxes, Depreciation, and Amortization, or EBITDA for short. The metric measures the profitability of a company's operations before taxes and other financial expenses are paid. It is responsible for analyzing operating profitability.
Return on Investment or ROI. This is where the level of profitability/loss is assessed taking into account the amount of investment made in this business.
With the help of the metrics listed above, the company's management can understand how effective the product is and draw conclusions. The tools help set the vector for further movement. But to assess the quality of a service or product, this data is not enough, so the lower levels of the metrics pyramid are also analyzed.