Metrics Dictionary & Definitions

Executive Overview Metrics

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Metric	Definition	Formula	Target/Benchmark
Net Revenue	Total revenue after returns and discounts	Gross Revenue - Returns - Discounts	Growth >5% YoY
EBITDA	Earnings before interest, taxes, depreciation, amortization	Revenue - COGS - Opex + D&A	Margin >15%
Net Profit	Bottom-line earnings after all expenses	EBITDA - Interest - Taxes - D&A	Margin >8%
Return Rate	Percentage of shipped units returned	(Units Returned / Units Shipped) × 100	<2%
Marketing Spend	Total investment in marketing activities	Sum of all campaign expenditures	<15% of Revenue

Sales Performance Metrics

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Metric	Definition	Formula	Target/Benchmark
Net Revenue	Revenue after all deductions	Gross Sales - Returns - Discounts	Growth >5% YoY
Gross Profit	Revenue minus cost of goods sold	Net Revenue - COGS	Margin >45%
Gross Margin %	Profitability ratio	(Gross Profit / Net Revenue) × 100	>45%
Units Shipped	Total product units dispatched	Sum of all shipment quantities	Growth trend
Orders	Total number of purchase orders	Count of distinct orders	Growth trend
Discount %	Discounts as share of revenue	(Total Discounts / Gross Revenue) × 100	<10%

Inventory Health Metrics

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Metric	Definition	Formula	Target/Benchmark
Days of Stock	Average days inventory will last	(Avg Inventory / Daily Consumption)	30-60 days
Stockout Rate	Frequency of zero-stock events	(Stockout Days / Total Days) × 100	<2%
Inventory Value	Total value of held inventory	Sum(Units × Unit Cost)	Optimal turnover
Near Expiry	Units approaching expiry date	Count of units within 30 days of expiry	Minimize
Expired Units	Units past expiry date	Count of expired units	Zero target
Slow Moving	Items with low turnover	Items below threshold velocity	<10% of SKUs

Supply Chain Metrics

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Metric	Definition	Formula	Target/Benchmark
Reliability Rating	Supplier delivery consistency score	Weighted score of on-time, quality, completeness	>90%
Late Delivery Rate	Percentage of deliveries arriving after due date	(Late Deliveries / Total Deliveries) × 100	<5%
Quality Rejections	Supplier materials failing quality checks	Count of rejected shipments	<2%
Procurement Cost	Total spend on raw materials/supplies	Sum of all purchase order values	Budget variance <5%
Lead Time	Days from order to delivery	Avg(Delivery Date - Order Date)	<14 days

Production Efficiency Metrics

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Metric	Definition	Formula	Target/Benchmark
Capacity Utilization	Percentage of max production capacity used	(Actual Output / Max Capacity) × 100	80-90%
Yield Rate	Percentage of good units from total produced	(Good Units / Total Units) × 100	>95%
Defect Rate	Percentage of units failing quality check	(Defective Units / Total Units) × 100	<1%
Downtime Hours	Production hours lost to stoppages	Sum of all downtime events	<5% of total
Cost Per Unit	Average production cost per unit	Total Production Cost / Units Produced	Declining trend

Quality & Compliance Metrics

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Metric	Definition	Formula	Target/Benchmark
Pass Rate	Percentage of units passing quality inspection	(Passed Units / Total Inspected) × 100	>98%
FDA Violations	Count of regulatory non-compliance events	Sum of violation notices	Zero target
Recalls	Product recall events initiated	Count of recall orders	Zero target
Recall Units	Volume of units recalled	Sum of units in recall orders	Minimize
Labeling Issues	Non-compliance in product labeling	Count of labeling defects	Zero target

Marketing ROI Metrics

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Metric	Definition	Formula	Target/Benchmark
Marketing ROI	Return on marketing investment	(Revenue Attributed - Spend) / Spend × 100	>300%
Cost Per Acquisition	Cost to acquire one customer/conversion	Total Spend / Total Conversions	Declining trend
Click-Through Rate	Percentage of impressions resulting in clicks	(Clicks / Impressions) × 100	>2%
Conversion Rate	Percentage of clicks resulting in conversions	(Conversions / Clicks) × 100	>5%
Revenue Attributed	Revenue linked to marketing campaigns	Tracked revenue from campaign sources	Growing trend

ESG & Sustainability Metrics

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Metric	Definition	Formula	Target/Benchmark
Carbon Emissions	Total CO2 equivalent produced	Sum of Scope 1+2+3 emissions in tonnes	Declining YoY
Water Consumption	Total water used in production	Sum of water usage in cubic meters	Declining per unit
Renewable Energy %	Share of energy from renewable sources	(Renewable Energy / Total Energy) × 100	>50%
Eco-Packaging %	Share of packaging that is eco-friendly	(Eco Units / Total Units) × 100	>70%
Waste Generated	Total production waste	Sum of waste in kilograms	Declining trend

Marketing → Sales Impact Metrics

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Metric	Definition	Formula	Target/Benchmark
Revenue per Marketing $	Revenue generated per dollar of marketing spend	Total Revenue / Total Marketing Spend	>10x
EBITDA Margin	Operating profitability ratio	(EBITDA / Revenue) × 100	>15%
Marketing as % of Revenue	Marketing investment intensity	(Marketing Spend / Revenue) × 100	8-12%

Forecast Accuracy Metrics

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Metric	Definition	Formula	Target/Benchmark
MAPE	Mean Absolute Percentage Error	Avg(\|Forecast - Actual\| / Actual) × 100	<5%
Forecast Accuracy	Inverse of MAPE	100 - MAPE	>95%
Forecast Bias	Systematic over/under forecasting tendency	Count of Over vs Under forecasts	Balanced