Beauty Calculator

Definition

Measures the rate of increase (or decrease) in brand sales over a specific period across channels.

Why it Matters

Provides insight into market performance and growth trends.

How to Calculate It

Sales Growth: Calculated by subtracting the previous period's sales from the current period's sales, dividing the result by the previous period's sales, and then multiplying by 100 to express it as a percentage.
Your result

Definition

Percentage of revenue retained after paying for product costs.

Why it Matters

Indicates overall profitability and cost management.

How to Calculate It

Gross Margin: Calculated by subtracting the cost of goods sold (COGS) from total revenue and dividing the result by total revenue, then multiplying by 100 to express it as a percentage. The formula is: Gross Margin=(Total Revenue−COGSTotal Revenue)×100Gross Margin=(Total RevenueTotal Revenue−COGS​)×100
Your result

Definition

Percentage of revenue remaining after paying all expenses including debt payments, taxes, and other expenses.

Why it Matters

Reflects efficiency in managing operating costs.

How to Calculate It

Net Income Margin: Calculated by dividing net income (after subtracting all expenses, including taxes and interest) by total revenue, then multiplying by 100 to express it as a percentage. The formula is: Net Income Margin=(Net IncomeTotal Revenue)×100Net Income Margin=(Total RevenueNet Income​)×100
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Definition

Ratio showing how many times a company's inventory is sold and replaced over a period.

Why it Matters

Indicates efficiency in managing stock levels.

How to Calculate It

Inventory Turnover: Calculated by dividing the cost of goods sold (COGS) by the average inventory for the period. The formula is: Inventory Turnover=Cost of Goods SoldAverage InventoryInventory Turnover=Average InventoryCost of Goods Sold​
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Definition

Number of days it takes a company to convert spent cash on inventory back into cash by selling products.

Why it Matters

Reflects operational efficiency and liquidity.

How to Calculate It

Cash Conversion Cycle: Calculated by adding the number of days inventory outstanding (DIO), days sales outstanding (DSO), and days payable outstanding (DPO), and then subtracting DPO from the sum. The formula is: CCC=DIO+DSO−DPOCCC=DIO+DSO−DPO
Your result

Definition

Rate of change in sales via DTC commerce platform over time.

Why it Matters

Measures performance on a critical sales channel.

How to Calculate It

Gross Sales Growth - DTC: Similar to overall sales growth, this metric specifically focuses on the change in sales through direct-to-consumer (DTC) channels over time.
Your result

Definition

Measure of how much discount is offered from the list price.

Why it Matters

Balances customer acquisition and margin considerations.

How to Calculate It

Average Discount Rate: Calculated by dividing the total value of discounts given by the total sales revenue and then multiplying by 100 to express it as a percentage. The formula is: Average Discount Rate=(Total Value of DiscountsTotal Sales Revenue)×100Average Discount Rate=(Total Sales RevenueTotal Value of Discounts​)×100
Your result

Definition

Volume of returns over a period, indicating product quality and customer satisfaction.

Why it Matters

Provides insights into product quality and customer experience.

How to Calculate It

Returns Rate: Calculated by dividing the total number of returned items by the total number of items sold over a specific period, then multiplying by 100 to express it as a percentage. The formula is: Returns Rate=(Total Number of Returned ItemsTotal Number of Items Sold)×100Returns Rate=(Total Number of Items SoldTotal Number of Returned Items​)×100
Your result

Definition

Measure of efficiency in translating sales into revenue for covering expenses.

Why it Matters

Indicates efficiency in managing variable costs.

How to Calculate It

Total Sales Margin: Calculated by subtracting the total variable costs (including COGS and other variable expenses) from total sales revenue and then dividing by total sales revenue, multiplied by 100 to express it as a percentage. The formula is: Total Sales Margin=(Total Sales Revenue−Total Variable CostsTotal Sales Revenue)×100Total Sales Margin=(Total Sales RevenueTotal Sales Revenue−Total Variable Costs​)×100
Your result

Definition

Percentage of revenue left after paying all operating expenses.

Why it Matters

Reflects core business profitability.

How to Calculate It

Operating Margin: Calculated by subtracting operating expenses (including overhead and salaries) from total revenue and then dividing by total revenue, multiplied by 100 to express it as a percentage. The formula is: Operating Margin=(Total Revenue−Operating ExpensesTotal Revenue)×100Operating Margin=(Total RevenueTotal Revenue−Operating Expenses​)×100
Your result

Definition

Percentage of revenue left after paying for products and associated costs.

Why it Matters

Indicates profitability after considering variable costs.

How to Calculate It

Contribution Margin: Calculated by subtracting variable costs (such as COGS and variable operating expenses) from total revenue and then dividing by total revenue, multiplied by 100 to express it as a percentage. The formula is: Contribution Margin=(Total Revenue−Variable CostsTotal Revenue)×100Contribution Margin=(Total RevenueTotal Revenue−Variable Costs​)×100
Your result

Definition

Dollar value of an average order after discounts.

Why it Matters

Reflects effectiveness of marketing and pricing strategies.

How to Calculate It

Average Order Value: Calculated by dividing the total revenue generated by the total number of orders received over a specific period.
Your result

Definition

Amount per order retained after paying for product costs.

Why it Matters

Provides insight into profitability on a per-order basis.

How to Calculate It

Gross Profit per Order: Calculated by subtracting the cost of goods sold (COGS) from the revenue generated per order.
Your result

Definition

Amount per order retained after paying for products and all associated costs.

Why it Matters

Reflects profitability considering all associated costs.

How to Calculate It

Contribution Profit per Order: Similar to gross profit per order, but it also includes all associated costs such as marketing expenses, shipping costs, etc.
Your result

Definition

Profit per order after accounting for product, associated costs, and marketing expenses.

Why it Matters

Indicates profitability after considering marketing expenses.

How to Calculate It

Contribution Profit After Marketing per Order: Calculated by subtracting all costs associated with marketing (including advertising, promotions, etc.) from the revenue generated per order.
Your result

Definition

Dollar value of total marketing expenses divided by the number of first-time customers acquired.

Why it Matters

Measures efficiency in acquiring new customers.

How to Calculate It

Fully Loaded Customer Acquisition Cost (CAC): Calculated by dividing the total marketing expenses by the number of first-time customers acquired over a specific period.
Your result

Definition

Dollar value of total sales divided by the number of first-time customers acquired.

Why it Matters

Measures early value delivered by new customers.

How to Calculate It

Day 90 Gross LTV: Calculated by dividing the total sales (gross) generated by all first-time customers within the first 90 days of acquisition.
Your result

Definition

Average amount per order retained after paying for products, divided by the number of unique customers acquired in the first 90 days.

Why it Matters

Indicates early customer profitability.

How to Calculate It

Day 90 Gross Profit LTV: Calculated by dividing the gross profit generated by all first-time customers within the first 90 days of acquisition.
Your result

Definition

Amount per order retained after paying for products and associated costs, divided by the number of unique customers acquired in the first 90 days.

Why it Matters

Reflects early profitability considering all costs.

How to Calculate It

Day 90 Contribution Profit LTV: Similar to Day 90 Gross Profit LTV, but it includes all associated costs (such as marketing expenses, shipping costs, etc.) to calculate the contribution profit.
Your result

Meet the Author

Fatmah A. Al Maddah, Lead Consultant and Your Expert Co-Pilot

Fatmah is the founder of Labothécaire, a thriving skincare brand, and the creator of Skin Smart., an innovative tech beauty and health app. With a unique blend of expertise in business, law, finance, and holistic skincare, Fatmah’s journey has shaped her into a leading figure in the beauty world.

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