Better decisions, better business

Return to Corelytics Table of Contents

Overview

Gross Margin is one of the screens under the Financials tab in Corelytics. This is a “Phase 1″ version of gross margin and will be followed by a “Phase 2″ version in the coming months. The Phase 1 gross margin does the following:

1. Computes gross margin as: Revenue – COGS = gross margin
2. Computes 24 months (8 quarters) of gross margin to show trend lines and growth rates
3. Forecast based on 2 trend lines: the past 6 month growth rate and the 2 year growth rate of gross margin

In Phase 1, all expenses that are mapped to COGS do not get included in the Expense Profile screen in their appropriate expense category. For example, direct cost payroll mapped to COGS will not get included in Payroll expense. In the next release, direct cost payroll can be mapped to both expense categories: COGS and Payroll. Same will all other expenses which get posted to COGS.

Planned Phase 2 features:

1. Graph of 24 months (8 quarters) of gross margin as a percent of total revenue
2. Expenses included in COGS will also be included in their respective expense category
3. Gross margin and COGS goals
4. Gross margin and COGS benchmarks

Return to Corelytics Table of Contents