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Business Metrics

The numbers that tell you how the business is really doing — and where it can do better.

Gross Margin Explained

Gross profit as a percentage of revenue.

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Net Margin Explained

Net profit as a percentage of revenue.

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Break-even Point Explained

How much you must sell to cover all costs.

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Contribution Margin Explained

How much each sale contributes after variable costs.

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Inventory Turnover Explained

How fast you sell through your stock.

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