Operational Metrics

Business / By / March 5, 2021

Financial Ratio

financial-ratio-formulas

Gross Profit

gross-margin
The gross margin is a financial ratio, which helps assess the profitability of a business and also its operational efficiency. Indeed, as gross margins take into account the cost of goods sold (the cost incurred to deliver the software to the customer) it’s a measure to assess the value of a business.

Operating Profit

what-is-operating-profit-margin

Profit Margin

profit-margin
The profit margin is a profitability financial ratio, given by the net income divided by the net sales, and multiplied by a hundred. That is expressed as a percentage. That is a key profitability measure as combined with other financial metrics, it helps assess the overall viability of a business model.

Inventory Turnover

inventory-turnover-ratio

Quick Ratio

How liquid is the business?

what-is-quick-ratio

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Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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