Product Profit Margin

Which Products are in the black?

Description

This metric shows for a given product how large a share of the revenues, after deducting operating costs, is left as profit. Products with higher margins are more profitable since they either produce more revenues or require fewer resources (produce lower costs) given the same revenue level. Lower margin implies that the product either consumes more resources (higher costs) or generates lower revenues.

Motivation

Which products are the most profitable, and what is their profitability trajectory? Cutting costs early on poorly performing products or increasing strategic focus on promising products is key to sustained profitability.

Trend chart

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What Measurements are used in each Metric

A Formula to calculate the Metric values

A Chart showing the last/current Metric value

Metric categorization

How is Metric tied to the Key Result of the OKR methodology

Goal/Objective examples

Relationships to other Metrics

Extended description

Examples

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