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Expenses as a % of Revenue is an important financial metric that indicates how much of a company’s income is spent on operating costs..Read More

Whether it’s making decision-making simpler, reducing costs, boosting employee performance, understanding your customers better..Read More

Gross profit margin is one of the most important business metrics for owners of product-centric businesses..Read More

The Net Profit Margin is vital as it reveals how effectively a company converts revenue into profit after expenses..Read More

In business terms, a profit gap is simply the difference between the desired net profit (or profit margin) of the business…Read More

The Net Profit Margin is vital as it reveals how effectively a company converts revenue into profit after expenses..Read More

In the Australian business environment, particularly for small to medium-sized enterprises (SMEs)..Read More

How it’s Calculated Total Net Profit (before owners’ salaries & remuneration) = _____________________________________                      Total Interest expense   How it’s Used Higher results show that the business is highly capable of servicing its interest expenses. Interest cost is often not reported on its own – it also includes Bank and Credit Card charges.  As a result, [...]

How it’s Calculated   Growth Capacity calculation:   $ of Net Profit – ($ of Current assets - $ of Current liabilities) = ______________________________________  x 100                                        Turnover   How it’s Used   This ratio shows whether [...]