Actionable guides on business metrics, financial ratios, cash flow, and profitability.
Break-even analysis finds the sales level where revenue equals total cost. Get the formula in units and dollars, margin of safety and worked examples.
Working capital is current assets minus current liabilities. See how to calculate it, what really changes it, sector norms, and nonprofit and trade versions.
Learn what EBITDA means, how to calculate EBITDA, its formula, examples, EBITDA margin, and how it compares with EBIT, net income and cash flow.
Free cash flow is operating cash flow minus capital spending. Learn what cash flow means, the FCF formula, FCFF vs FCFE, and what the number does not show.
A business model explains how a company creates, delivers and captures value. Compare common types and revenue models, with numbers that test each one.
Gross profit margin is gross profit as a percentage of revenue. See the formula, what counts as cost of goods sold, margin vs markup and sector benchmarks.
Operating margin is operating income as a share of revenue. See the formula, worked examples, sector benchmarks, adjusted margin and operating leverage.
Net profit margin is net income as a percentage of revenue. See the formula, a full income statement example, sector figures and what the margin really shows.
ROI means return on investment: the gain or loss on an investment as a percentage of its cost. See the formula, annualized ROI, marketing ROI and examples.
Customer lifetime value estimates the profit a customer brings over the whole relationship. See the CLV formulas, churn and discount examples, and CLV to CAC.