Learn how Profit can help your organization SCHEDULE DEMO
✕
As a business owner, there’s nothing quite as satisfying as repeat business from your customers Besides the sense of satisfaction, repeat customers are It's also...
Read more
Introduction To produce anything, including services, businesses of all shapes and sizes need raw materials and equipment. The process through which these businesses acquire their...
Read more
OKRs help teams set objectives that can help teams determine what is expected of them and their performance. Everyone on the customer support team-- whether...
Read more
In order to be sound in your financial goals, you need to have a great source of knowledge on every possible investment practice and technique....
Read more
This article covers the far-reaching topic of the asset coverage ratio. We’re talking about a risk measurement whose aim is to calculate a company’s capability...
Read more
When you work in a company, you will obviously want every process to stay stable and healthy. You will also want to have a birds’...
Read more
OKRs are goal-setting tools that deliver disciplined execution of goals and ideas. As an organization you should definitely need to focus on customers, and customer...
Read more
Moving on, when it comes to account summary, this usually refers to the way in which a customer service agent deals with a customer. Evidently,...
Read more
As you were growing your business, you would have come up with strategies that strengthen the relationship between what your business offers and the customers....
Read more
OKRs are the most prominent task and performance management tool that allows organizations to manage the overall performance of the employees. The HR department being...
Read more
Human Resource (HR) is a critical business function that recruits and nurtures the most precious resource for the organization – their people. However, very few...
Read more
There are many ways you can determine an employee’s satisfaction with their job. You might ask them to rate their engagement with the work, look...
Read more
“What kind of benefits does your company offer?” This might very well be the first question a potential employee asks. Benefits can make or break...
Read more
The discussion regarding the most important metrics in human resources is open to debate. However, most people agree on the fact that the candidates interviewed...
Read more
Cost per hire refers to the amount of money your company spends to hire recruiting talent. The total cost spent to recruit a talent covers...
Read more
While most organizations tend to overlook and underrate HR metrics, their efficiency in assessing the policies, employees and other important aspects is undeniable. Assessment and...
Read more
HR metrics are generally overlooked by most organizations but underrating them might not be the best idea – particularly if you’re an entrepreneur who desires...
Read more
When you own a company, you know that the employees are going to be different from each other. They are not only of different genders,...
Read more
The Diversity Rate metric is important for a company because of several reasons. Probably the most important one is the fact that the said company’s...
Read more
A common mistake that companies make when onboarding new employees is conducting inadequate training sessions. At times, an employee might not learn everything they need...
Read more
There’s a rule of thumb that applies to all companies in the world: the employees are divided into productive and procrastinators. When those procrastinators do...
Read moreIt should come as no surprise that if they are unhappy, employees will leave the company that they work for. A couple of years ago,...
Read more
The First Year Voluntary Termination Rate is yet another Human Resources metric – of course, it’s also one that’s very important to a company, as...
Read more
It goes without saying that most employers try to offer their employees the best healthcare plans. However, health care plans are becoming more and more...
Read more
As CEO or part of the management’s team of a certain company, you will rarely look into how the hiring process is being done –...
Read more
The termination rate of a company is the percentage of people that decide (or are forced) to leave the company for various reasons. The voluntary...
Read more
Each entrepreneur is concerned about the prosperity of their business. And a business’ prosperity is naturally linked with the productivity and preparation level of its...
Read more
You’ve probably heard a lot of people complain about their workplace. They talk about how bad it is, and how they will never recommend anyone...
Read moreThe New Hire 90-Day Failure Rate is a Human Resources metric that’s used by businesses and companies in order to determine the percentage of new...
Read moreAs a company, you probably have your own employees that you can rely on a daily basis. They are your pillars that will help your...
Read moreDiversity and inclusion in the workspace represent a sensitive topic that every employer must know of and apply. And not only must the employer apply...
Read moreBy now you should already be familiar with the Employee Satisfaction Survey, which should be taken once every 6 months. However, it can so happen...
Read moreAs the owner of a company, you probably have two types of employees: full-time and part-time. However, since part-time employees are only contributing a small...
Read more
When it comes to HR metrics, the cost of workforce is the elephant and the room and the reason for that is quite transparent: in...
Read more
A company needs to perform well, and if you’re an owner, you know a lot about that. Not only you need to generate sales targets...
Read more
There are several situations in which your new employees could require training. For example, after a month of them being on the job, your company...
Read moreWhen candidates apply for a job, they don’t always know everything it includes. Some of them meet the job criteria, while others don’t, and you...
Read more
In order to maintain a healthy life and work properly too, employees need vacations. In order to make that possible, they need to have a...
Read more
As an entrepreneur of a successful company, you want your employees to perform well. Sometimes, the term well is difficult to put in words, and...
Read moreEmployees, regardless of how long they’ve been employed at your company for, need to have a good performance. It is the only way your company...
Read moreThere are so many metrics that it’s hard to keep track of each and every one of them. One of the metrics that is often...
Read moreEmployees need to have a certain set of skills, as well as a lot of knowledge in the domain. When hiring new people, you want...
Read moreThose who start up their new business do so with a plan: to be successful in their business in the long run. And for you...
Read moreIf anyone is getting into business without having no clue what the ROI is, they are in some serious trouble. When one owns a company,...
Read moreIf you’ve worked in a company for years on end, you probably realized that people want better salaries not on account of them being materialistic,...
Read moreAs you probably already know, simply hiring someone may not be enough to boost the performance of a certain department of your company. In this...
Read moreCompanies hate it when their people leave – but they hate it even more when a valuable person with vast experience leaves. According to some...
Read moreIt’s very rare that an employment at a certain company lasts for a lifetime – mainly because the average person works for about five years...
Read moreHow can a company assess that its recruiting process is efficient or not? One of the ways in which you can do that is by...
Read more
The return on total assets can show if the managing team is effective at earning money from the company’s assets in a certain amount of...
Read more
The retention ratio or plow back ratio is the calculation that shows you exactly what percentage of your net income is retained for the business...
Read more
Residual income refers to the amount of money that is left after all the expenses have been paid for a period. The residual income can...
Read more
To start with, the accounts receivable turnover represents an efficiency ratio. Thus, its main purpose is to assess the number of times a firm can...
Read more
Also known as the coefficient of determination, r-squared is the statistical measurement that comes from the correlation made between the performance of a certain investment...
Read more
The quick ratio, also known as acid test ratio, is used to measure a company’s ability to pay off its current liabilities when these come...
Read moreIn order to measure the amount of net income earned by a company with each dollar sales that are generated we use the profit margin...
Read more
Also a financial metric, the price to sales ratio is used to measure the value that the investors put on a certain company for each...
Read more
In today’s post, we’d like to focus our attention on the price to earnings ratio. This is a prospect ratio that calculates a stock’s market...
Read moreThe price of a company is compared to the underlying cash flow by using the Price to Cash Flow profitability ratio, also abbreviated as P/CF....
Read more
The price to book ratio is renowned as an important financial valuation tool. Essentially, it is utilized in an attempt to appraise if a stock...
Read more
The present value is, many times, referred to as the discounted value – and it a widely used financial formula. So, what it is used...
Read more
This article will focus on presenting the specifications of the preferred dividend coverage ratio. This ratio assesses a corporation’s financial capability of paying the dividends...
Read more
The payback period is a financial capital budgeting method that estimates the amount of time needed for an investment to generate cash flow and replace...
Read more
The accounts payable turnover ratio is a liquidity ratio that indicates the ability a company has to repay its accounts payable. The repayment is done...
Read moreIf you’ve accessed this page, you are probably eager to find out more about operating leverage. Well, operating leverage is a financial efficiency ratio that...
Read moreIf you clicked on this article, you’re probably interested in operating income and what it means. Well, it will tell you what you need to...
Read moreIf you’re a beginner when it comes to finances, you would probably want to know what the operating cash flow means. Basically, it’s an efficiency...
Read moreIf you wanted to know what the Net Operating Profit after Tax is and how it works, you came to the right place. Net Operating...
Read moreEver heard the term “networking capital”, but you didn’t know what it means? If that’s the case, this article comes to your aid. The net...
Read more
The net profit margin is used to find out whether a business is poorly managed and to see future profitability. By comparing the total sales...
Read more
The net present value is used to calculate the difference between the cash inflows and outflows of a potential investment or project. To make it...
Read more
If you work for a real estate agency, you may have heard about net operating income. This is a profitability formula that is used to...
Read more
How well you administer your money is mainly up to you. However, the net interest margin ratio is a term that shows you how well...
Read moreNet income also known as bottom line or net profit- is the amount of money that remains after you pay all debt and expenses within...
Read more
Ever wondered how much 100 gums cost 20 years ago compared to today? Such calculations are simple, but for a company that could lose everything,...
Read more
To better understand what the return on capital employed means, first we need to understand what the capital employed is. By employing capital, you will...
Read moreWhen it comes to being in debt, no one likes that, especially companies, where “profit” is the most used word. They may put you in...
Read more
This is a term used in microeconomics, and it’s quite a well-known formula. However, in order to get a better understanding of what marginal revenue...
Read more
Everybody needs to break even, so this ratio will give you the insight of what goes too much or too little. In other words, the...
Read more
Abbreviated as LTV, the loan to value ratio is a risk assessment measurement. It is used to calculate the amount that has been loaned as...
Read more
The internal rate of return, also abbreviated as IRR, is used to identify which future projects or capital investments will have an acceptable return –...
Read more
The financial ratio known as interest coverage ratio determines whether a company is able to make interest payments on its debt or not and that...
Read moreGross and net usually refer to income and it is also something that seems quite difficult to understand for some people. For example, you might...
Read more
The profitability ratio called gross profit (also known as gross profit margin) is used to calculate the percentage of sales that are exceeding the costs...
Read more
Also a profitability ratio, the gross margin ratio compares a business’ gross margin to its net sales, measuring if a company sells its merchandise or...
Read more
The financial measurement called goodwill to assets is used to compare the intangible assets of a company – like a customer list, brand name, and...
Read moreUsually abbreviated as FCF, the Free Cash Flow is an efficiency as well as a liquidity ratio. It calculates how much money a company is...
Read more
Whether a company is able to pay off its fixed charges or expenses with its own income or not – before income taxes and interests...
Read more
If you’re wondering what this ratio is, you’re just about to find out. It’s an efficiency ratio that measures a firm’s return on their investment...
Read more
Before we engage in explaining the formula, you need to know what the difference between a shareholder and a stakeholder is. A shareholder holds a...
Read more
Have you heard the term “expense ratio”, but it confused you? In that case, you’ve come to the right place, because you’re going to find...
Read more
If you are the accountant of a business, there are certain things that you may want to keep in mind –one of these things being...
Read more
An equity ratio calculates the number of assets financed by owners’ investments. Basically, it does so by comparing the total equity in the company to...
Read moreAs an investor, you will want to know that the company you are placing your bets on will bring a high return. Regardless of you...
Read more
RONA - It may sound like some fancy name for a fancy person, but it’s actually the name of a finance formula – albeit one...
Read more
You may be wondering what equity multiplier means. Well, it’s a leverage ratio that basically measures the part of the company’s assets financed by equity....
Read moreA company needs a fair number of operating assets in order to continue functioning. This is practically what keeps the company going. The return on...
Read more
The amount of money you allocate for the growth of the company tells a lot about the growth potential of a company, as well as...
Read more
This financial ratio is used to show how efficient a company is at using its revenue in order to generate profits. Also called the operating...
Read moreIf you want to see for how long you have to invest your money in order to double it, with a given interest rate, then...
Read more
This efficiency ratio is used to measure if a company is efficient at managing its non-operating expenses in order to generate sales during the normal...
Read more
The enterprise value (EV) is a direct representative of the economic value of a company – in other words, how much money someone would have...
Read more
When you want to understand how a certain company thrives in a particular industry, you need to have certain formulas in mind. An acronym for...
Read moreThe Sortino ratio is an alternative to the Sharpe ratio, as it isolates the effects volatility has on investments. This ratio is used to determine...
Read more
EBITA, short for Earnings before Interest Taxes and Amortization, is a formula that calculates the operational profitability of a company by including the costs of...
Read more
Also called the interest coverage ration sometimes, the times interest earned ratio is a coverage ratio. It can calculate the proportionate amount of earnings that...
Read moreShortened from Earnings before Interest and Taxes, and also referred to as the operating income, is an equation that measures the operating profits of a...
Read more
Also known as the reward to volatility ratio sometimes, the Treynor ratio is basically a risk assessment formula. It can estimate the volatility in the...
Read more
While the name may sound very fancy, this is actually a crucial method to understand the finance point of a company. Also referred to as...
Read more
Every fundamental analysis tool works differently for every investor – so in order to understand the stocks, you need to know how to calculate them...
Read more
The DPR (Dividend Payout Ratio) is the dividend amount that has been given to shareholders as payment – and which is in direct relation with...
Read more
If you’re here, it’s because you are most likely curious about what the working capital ratio is and how it works. Also called the current...
Read more
The defensive interval ratio is considered to be one of the most valuable liquidity ratios. Expressly, it focuses on calculating how many days it takes...
Read more
The debt to income ratio is considered to be a valuable number – some people even say that it is as important as one’s credit...
Read moreThe debt to equity ratio is another important liquidity ratio. Fundamentally, it compares a firm’s total debt in relation to its total equity. The debt...
Read more
An important liquidity ratio, the debt to capital ratio measures a company’s strategy when it comes to using its financial leverage. More specifically, it compares...
Read more
To begin with, the debt to asset ratio could be defined as a leverage ratio, calculating the total amount of assets financed by creditors, as...
Read more
The debt service coverage ratio is another financial ratio that provides insight into a company’s financial situation. Expressly, it determines a company’s capability of covering...
Read more
Today, we will concentrate our attention on the debt ratio – a solvency ratio whose purpose is to measure a company’s total liabilities as a...
Read more
The Unit Sales to Average Market Unit Sales metric is used by businesses to determine and track the total sales share of the industry –...
Read more
Trial Accounts refer to those customers that are interested and committed to your product. Of course, being interested and committed does not actually mean customers...
Read more
Each new product made by a company will come with its own costs – costs which will leave a hole in your budget until it...
Read more
As an entrepreneur that is passionate about making your business reach the highest peaks, the term ‘tender’ might already sound very familiar to you. This...
Read more
What does the store conversion rate stand for? As you should know by now, the store conversion rate is a widely utilized KPI, which effectively...
Read more
Online presence is of paramount importance nowadays. It’s as simple as this, if your company doesn’t have a put-together website which successfully attracts a target...
Read more
When calculating the selling costs to sales ratio, this is the job for the sales manager actually. Getting the calculation right will show you exactly...
Read more
Owning a business can be a lot of work because you have to do a lot of things to ensure the well-being of the company...
Read moreWhen you own a business, you want it to perform greatly, and obtain success. You need to put in a lot of work to do...
Read moreThis metric helps you learn more about the productivity of your sales team – this is done by, obviously, analyzing the total average value of...
Read moreTo start with, sales turnover accounts for the total revenue a business generates during a given timeframe. Essentially, this ratio is genuinely useful for all...
Read moreHave you ever thought whether there’s a way to measure and compare present sales to a target or past performance? If you did but had...
Read moreThe sales revenue per hour is a critical financial or production metric. It is widely used by all types of businesses, allowing them to determine...
Read moreEvery business launches new products on the market with a particular goal in mind: to reach a certain target that will bring them profit. However,...
Read moreAs a company owner, there’s no way you wouldn’t want to generate revenue. After all, it brings your business a lot of success. Taking this...
Read moreWhen you are in the business of selling services, you need to do it by having a clear view on what your customers want and...
Read moreSales managers, field sales managers, in particular, might often feel clueless. That’s because they aren’t physically present in a given field, which makes it a...
Read moreSales opportunity helps you organize prospects based on the opportunity value and the probability of the sale’s closing. Although it may sound basic, you need...
Read moreWhen you own a business, you’d do anything to make it successful. You probably think whether your sales team is able to increase the revenue,...
Read moreKeeping track of a specific market segment is one of the most important things when it comes to marketing and sales. This is because tracking...
Read moreThe sales department is probably one of the most departments within your business – after all, without it, you wouldn’t be able to sell products/...
Read moreThe Sales Cycle Duration is a metric that, judging by its name, measures the total time between the initiation of a sale up until the...
Read moreHow able is your team to turn leads into new customers? If you are a business owner and don’t know that, you will be able...
Read moreDid you know that there’s a ratio that could estimate the number of prospects engaged by your sales team in comparison to the number of...
Read moreSales are important when owning a business, which is why you should keep an eye on them and notice how well they perform. They perform...
Read moreAnother metric that we find to be of utmost importance is the one that calculates the sales by department. More specifically, this aims at measuring...
Read moreMaking a successful sale – this is what lies at the core of a successful business, whether it operates in the industry of retail or...
Read moreWhen referring to Sales Bookings, we mean the bookings’ value over a certain time period. On the other hand, a booking means a committed, signed...
Read moreThe Revenue to Average Market Sales Revenue Ratio is used by businesses to compare themselves with the average revenue of the market they currently activate...
Read moreKPIs are widely used in an attempt to measure a company’s success. The revenue per successful call is utilized for the same purpose: to assess...
Read moreCustomers are the core of every business and every entrepreneur should know that. If you’re an entrepreneur eager to help your business grow on every...
Read moreAfter the completion of a project, there are two general tendencies. One of them is to continue the patronage with your firm by embracing a...
Read moreThis sales metric helps you determine the number of sales that are resulted from repeat purchases – basically, the number of times the same customer...
Read moreThe Purchase Frequency metric helps the sales manager see the number of times the same user makes a purchase within a certain period – in...
Read moreThe Promotions Conducted metric offers you just the insight that it’s referring to – the number of promotions that your business has conducted within a...
Read moreAs an entrepreneur passionate about selling their services in the best way possible and achieving success for your business, you want to have a clear...
Read moreIn order to keep a business successful, you need to make sure if the products are selling well or not. Therefore, you need a way...
Read moreIf you know about how weather predictions work, then you must have an idea about the potential revenue in the sales pipeline. But to better...
Read moreThis metric is tightly connected with the one referring to customer acquisition. You probably already know that, when trying to gain more customers that would...
Read moreRunning a business is far from being as easy as it may seem, at first glance. This actually implies analyzing the performance level, in hindsight...
Read moreEvery company nowadays is adding new products to its arsenal to increase its revenue. However, seeing a chart of the sales after adding the new...
Read moreWhen asked what their closing ratio is, not many companies really know what to say – or if they do, they say it’s “x percent...
Read moreIf you’re an entrepreneur that is passionate about selling your services efficiently – while also having a clear picture about what your customers want and...
Read moreAs an entrepreneur who is passionate about the services that you are selling, in an efficient way, you will need to have a clear picture...
Read moreSo, you have identified your potential customers – well, now it’s time to contact and turn them into paying customers. If you don’t do this,...
Read moreWhen you can’t generate enough leads for your company, you may turn around and ask for help from outside your company. So, what better way...
Read moreAnother metric that has been proven to be quite valuable for both staff managers and employees is the first appointment to sales ratio. What is...
Read moreAs soon as you start your own business, either it’s selling a product or a service, you and the rest of the team that’s handling...
Read moreCoupons are a customer’s dream since they allow them to buy a certain product at a lower price. In the eyes of a small business,...
Read moreAfter prospecting for potential customers for the products/services of your business, your sales team will most likely have a conversation with those customers – either...
Read moreThe Channel Margin is a pretty easy to understand metric – basically, it’s the difference between the price a manufacturer has on its product and...
Read moreIf you own a business, you already know the impact certain products have on customers compared to others. At the same time, you know how...
Read moreWhen talking about the Average Purchase Value, it is referred to the average sales value of each processed sales transaction. Basically, it shows you what’s...
Read more
As a business owner, it is utterly mandatory to turn to mathematics and formulas in order to track your financial operations. Categorically, there’s no way...
Read more
Visitors are the ones driving traffic to your website and sustaining it. Basically, a website would be nothing without visitors, because it would serve no...
Read more
Have you ever wondered what those packets sent and received on the small icon of your start bar are? When you've got a stable internet...
Read moreWhen you analyze a website, in terms of traffic, you have to pay attention especially to two things, namely, the visits and the unique visitors...
Read more“Total visits” refers to the total number of visits your website got during a certain period. It’s something very simple, but something important, because it...
Read more
To start with, the website traffic lead ratio provides specific information concerning the number of website visitors that actually converts to leads. This metric is,...
Read more
Today we will focus on another important metric – namely the sessions by device type metric. Expressly, this metric outlines the given percentage of users...
Read more
So, how loyal are your visitors, if you were to be honest? Do they return after visiting once, or is it just a “one-night stand”...
Read more
Marketing involves everything that a business does in order to attract customers and create a loyal relationship with them. The science is not precise –...
Read more
One of the main ingredients marketers need in order to create the recipe of success is a good response rate. This is, in fact, the...
Read more
Ever seen those pesky ads on the upper right corner of Facebook - the ones that you're always clicking by mistake? Well, referral traffic is...
Read moreWhen you’re a customer, you research, compare and evaluate before you decide to throw money. In other words, you don’t carelessly dive in without reassuring...
Read moreWhen talking about page views per session, we are not looking just at a metric that helps us manage our website. We are also looking...
Read moreAnother metric that marketers find extremely useful is the online conversions metric. This determines the efficacy of your marketing strategy when it comes to converting...
Read moreIn today’s article, we’ll discuss about the newsletter signup conversion rate. We’ll answer the most frequently asked questions on the topic – such as why...
Read moreThis is a term that will help you figure out if your marketing campaigns were successful. There’s no need for complicated calculations. Just watching the...
Read moreThe net promoter score, whose abbreviation is NPS, aims at assessing a customer’s willingness to promoting a specific product to friends and colleagues. Usually, this...
Read moreAmong the three basic marketing metrics strategies every business should be measuring you might find this unusual, yet very useful formula: New Customers that Started...
Read moreIf you’re not new in the marketing world, you’ve probably heard about the LTV: CAC metric. Short for Lifetime Value: Customer Acquisition Cost, this metric...
Read moreWithout a doubt, one of the most significant measurements for tracking your marketing process is the lead conversion rate. Lead conversion aims at defining the...
Read moreNowadays, a brand’s online performance is imminently linked with its keyword performance. To that end, the keyword ranking performance metric is of utmost importance to...
Read moreWhen it comes to marketing campaigns, sales are the most important things to consider. The more you sell, the more profitable the business becomes. This...
Read moreIf you aim at selling a product or service online, you are already possessing a conversion funnel and therefore, the rate of this metric is...
Read moreWe all know that first impressions are crucial, regardless of where we are. Whether we are trying to impress a date, a potential, or a...
Read more
