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Poultry farming business report volume 3
1. **Gross Profit Margin:** Calculated by subtracting the cost of goods sold (COGS) from total revenue and dividing the result by total revenue, it represents the percentage of revenue retained after covering direct production costs.
2. **Net Profit Margin:** This metric reflects the overall profitability of your business by expressing net profit as a percentage of total revenue after deducting all expenses, including operating costs, taxes, and interest.
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3. **Return on Investment (ROI):** Measures the profitability of an investment by comparing the gain from the investment to its cost. The formula is (Net Profit / Cost of Investment) x 100.
4. **Break-even Point:** Identifies the level of sales needed to cover all costs and reach a zero-profit scenario. Understanding this point helps in setting sales targets and pricing strategies.
5. **Customer Lifetime Value (CLV):** This concept assesses the total revenue a business can expect from a customer throughout their entire relationship, aiding in customer acquisition and retention strategies.
6. **Cash Flow:** Positive cash flow is crucial for a profitable business. It involves tracking the movement of cash in and out of your business, ensuring there’s enough to cover expenses and invest in growth.
Read also: 9 ways to quickly make money from your new business
7. **Economic Value Added (EVA):** EVA measures a company’s financial performance by subtracting its cost of capital from its net operating profit after taxes (NOPAT).
8. **Return on Assets (ROA):** Evaluates a company’s efficiency in utilizing its assets to generate profit. The formula is Net Income / Average Total Assets.
9. **Operating Margin:** It gauges the efficiency of a company’s core business activities by expressing operating income as a percentage of revenue, providing insights into operational efficiency and cost management.
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