Back

Arcane

○─○─○ • 4m

Profitability Metrics These are the stages of profitability every founder should be familiar with (Refer the table below) In the beginning, Start with Contribution margin (CM)- measure if your revenue covers variable costs. Next, target transaction-level profitability (revenue exceeding variable costs per transaction). Then, shift your focus towards achieving a positive EBITDA (Operating Profit before deducting Interest and Non cash expenses) Ultimately, as growth happens, you achieve a net profit where you cover your non operating expenses as well. Where do you stand currently? Also, share any additional insight you would like to offer.

3 replies7 likes
5
Replies (3)

More like this

Recommendations from Medial

Image Description
Image Description

Karunakar CH

What You DO That Def... • 4m

Revenue, Costs, and Profit: The Foundation of Business When running a business, understanding how money flows is crucial. The three essential elements are: Revenue: The total income from selling goods or services. Costs: Expenses incurred to operate

See More
3 replies6 likes

Harshavardhan

 • 

YouTube • 11m

The ABCs of Entrepreneurship and Business As an entrepreneur or business professional, it's important to have a solid understanding of key terms and concepts. Here are some essential terms you should know: 1. Profit Margin: - Formula: Profit Margi

See More
0 replies14 likes
11
Image Description

Aakash kashyap

Building JalSeva and... • 5m

Apple's Q4 FY 2023 earnings breakdown, showing how the company generates revenue from products like the iPhone, Mac, iPad, wearables, and services, along with profit distribution after expenses such as R&D, taxes, and operating costs. 🔥

3 replies14 likes
9
Image Description
Image Description

Ronak Patel

Here you go! • 8m

Wth is CM1, CM2???? CM - Contribution Margin Contribution margin is the selling price per unit minus the variable cost per unit. CM1 = Contribution margin one= selling price- material costs - logistics costs. CM2= Contribution margin two= sellin

See More
9 replies12 likes
5
Image Description
Image Description

SHIV DIXIT

CHAIRMAN - BITE INDU... • 2m

💰Learn Start-up Maths —( Concept - 2 )📊 💱 All details about “ COST ” Whenever someone asks you about the cost just tell him that “ Cost the amount of money that a business spends on the creation of something ” • There are many types of cost #

See More
14 replies27 likes
14
Image Description
Image Description

Yash Barnwal

Building JalSeva • 5m

AMD generate revenue across various sectors, including Data Center ($1.6B), Client ($1.5B), Gaming ($1.5B), and Embedded ($1.2B). With total revenue of $5.8B, AMD achieves a gross profit of $2.7B and a net profit of $0.3B (5% margin). Key expenses in

See More
7 replies16 likes
3
Image Description
Image Description

Mohd Rihan

Student • 25d

Zomato Finances of this year::: Revenue: 5405 cr Expenses: 5533 cr Loss:128 cr Non operating income (invested in FD, IPO and from other places): 252 cr Income- Loss=124 cr After tax: 59 cr Means, Zomato is earning from interest and FD's than actual

See More
2 replies5 likes
Image Description

Adithya Pappala

Launching India's Fi... • 3m

#9TDAYVC-DAY-12 🎯Types of Expenses for VC? 🎯What is a Self-Managed Fund? 🎯Organisational Expenses: These are costs for VC Funds which includes such as Incorporation Costs, Statutory Compliance Cost of the Funds, Placement Commissions, Distri

See More
1 replies1 like

Somraj

 • 

Finicate • 10m

Startup Blueprint - Day 04 Business Model Refinement 1. Revenue Streams: Specify how your startup generates revenue (e.g., subscriptions, one-time sales). 2. Cost Structure: Break down fixed and variable costs (e.g., production, marketing, overhea

See More
0 replies7 likes
7
Image Description
Image Description

SHIV DIXIT

CHAIRMAN - BITE INDU... • 4m

📖 DAILY BOOK SUMMARIES 📖 🔗 DIRECT FREE E-BOOK DOWNLOAD LINK AVAILABLE — https://drive.google.com/file/d/18xYnImrwK8k4kYlK4TmUjcTsYckwaK_Z/view?usp=drivesdk 🔥 The Art Of Profitability 🔥 🚀 20 Lessons 👉 ✨ By Adrian Slywotzky ✨ 1. Profita

See More
2 replies11 likes
11

Download the medial app to read full posts, comements and news.