The accounts receivable turnover ratio compares net credit sales with average accounts receivable over the same period. It shows how many times the average receivable balance turns over under that reporting basis. The ratio can help a business review collection patterns, but it does not identify which invoices need action. For a service company, billing […]

Payment reconciliation is the process of matching payment records across the systems that record an invoice, customer payment, processor movement, and bank deposit. It helps the business explain where money came from, which balances remain open, and why a bank deposit differs from gross customer payments. For a service company, one bank deposit may contain […]

Inventory carrying cost is the cost of holding stock over a period. It can include storage, insurance, stock-related services, risk of loss or obsolescence, and the cost of capital tied up in goods. A useful estimate states what it includes and separates actual spending from estimated opportunity costs. For a service business, stock may sit […]

Sell through rate is the percentage of a defined quantity of stock that sells during a defined period. It helps buyers see how quickly a product or batch moves. The result depends on the denominator, so a useful report states which stock it counts and how it handles new receipts, returns, and transfers. A parts […]

GMROI means gross margin return on inventory investment. It compares gross profit with the average cost of stock held over the same period. The ratio helps a business see how much gross profit each dollar of average inventory supports, rather than judging stock only by sales volume. For a parts seller or a service business […]

A forecast accuracy formula measures the gap between a forecast and the actual result. There is no single formula that works best for every business. MAE shows the typical error in units, RMSE gives more weight to large misses, and percentage measures help compare some series on a shared scale. For a service business, the […]

Employee turnover rate measures employee departures relative to the size of a workforce over a defined period. A common company calculation divides the number of departures by average headcount and multiplies by 100. The result helps managers understand workforce movement, but only when the population, exit types, and time window stay clear. For a trade […]

Customer acquisition cost is the cost of winning one new customer under a defined cost and reporting basis. The basic calculation divides acquisition spending by the number of new customers acquired. A useful report explains what spending it includes, what counts as a customer, and how it handles the time between an enquiry and a […]

Customer lifetime value is an estimate of the value a customer contributes over the relationship with a business. Some reports measure lifetime revenue, while others measure gross profit or contribution after relevant costs. The definition matters because the same customer can look attractive in a revenue model and less attractive after delivery and support costs. […]

Customer segmentation means grouping customers by shared needs, behavior, or business characteristics so you can serve them more effectively. A useful segment leads to a different action, such as a suitable maintenance reminder, a relevant quote follow-up, or a service plan that fits the customer’s work. For a service business, broad labels such as “good […]