91: 5 Financial Metrics You Should Know in Your Business
Dec 18, 2024
Discover the five critical financial metrics every business owner should master. Learn how to optimize profit margins and improve cash flow for smarter decision-making. The conversation digs into key performance indicators like operating profit and return on invested capital. Find out which single metric reigns supreme in driving profitability. Tune in to take control of your financial landscape and elevate your business to new heights!
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volunteer_activism ADVICE
Know Your Margins
Calculate gross margin by subtracting cost of goods sold from revenue to see if pricing and fulfillment align.
Derive operating margin by subtracting operating expenses from gross profit to confirm the business earns enough after overhead.
insights INSIGHT
Time Matters As Much As Margin
Throughput measures margin recovery over time and reveals cash strain despite healthy percentage margins.
Use margin-per-time (e.g., gross margin per week) to see whether you recover margin quickly enough to cover overhead.
question_answer ANECDOTE
Construction Example: Margin vs Timeline
At a construction firm Steve describes high-margin healthcare projects that take much longer to finish than retail jobs.
The long timelines meant slower margin recovery and worse cash performance despite higher percentage fees.
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Are you running your business blind?
In this episode, Steve Coughran, founder of Coltivar, reveals the five critical metrics you need to know to stop guessing and start growing. Learn how to optimize margins, improve cash flow, and make smarter, data-driven decisions—lessons Steve learned from scaling multi-million and billion-dollar companies.
Discover the one metric that trumps them all and start building a more profitable, iconic business.
Tune in now and take control of your numbers.
Disclaimer: The views expressed here are those of the individual Coltivar Group, LLC (“Coltivar”) personnel quoted and are not the views of Coltivar or its affiliates. Certain information contained in here has been obtained from third-party sources. While taken from sources believed to be reliable, Coltivar has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendations. The Company is not affiliated with, nor does it receive compensation from, any specific security. Please see https://www.coltivar.com/privacy-policy-and-terms-of-use for additional important information.
Building Margin