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Posts Tagged: metrics in a minute

What Are Direct Costs? Metrics in a Minute
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What Are Direct Costs? Metrics in a Minute

Quick Definition of Direct Costs (COGS): Direct costs (also known as Costs of Goods Sold—COGS) are the costs that can be completely attributed to the production of a specific product or service. These costs include the direct expenses for materials used to create the product and potentially any labor costs that are exclusively used to… Read more »

What is Net Profit? Metrics in a Minute
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What is Net Profit? Metrics in a Minute

What is net profit? Net profit is the proverbial bottom line of your business. It is the money you make that doesn’t go back into expenses, taxes, and interest; the net profit that is left over. In business planning, you’ll find net profit listed in your financial statements, on both the cash flow and as… Read more »

What is Cash Burn Rate? Metrics in a Minute
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What is Cash Burn Rate? Metrics in a Minute

What is cash burn rate? Cash burn rate is the rate at which a company uses up its cash reserves or cash balance.  Essentially, it’s a measure of the net-negative cash flow. How fast are you burning through your cash reserves? Or is your cash moving the other direction, building up a healthy balance from… Read more »