N O T I C E
MSPbots WIKI is moving to a new home at support.mspbots.ai to give you the best experience in browsing our Knowledge Base resources and addressing your concerns. Click here
for more info!
Page History
...
Within our widgets, you'll find a comprehensive set of financial metrics designed to provide valuable insights into your business's financial performance. These metrics, along with their calculations, include:
Term/ Metric | Definition/Calculation | Value | Value = Addition Price = Quantity × Unit Price
---|---|
Billed | Sum of [ (Actual Quantity × Unit Price) + Service Total ] for all invoices within the selected date range | Addition Costs | Sum of (Actual Quantity × Unit Cost) for all invoices within the selected date range
Profit | Billed - (Addition Costs + Labor Costs) |
Margin | Profit ÷ Billed |
Actual Labor Hours | Total recorded hours for an agreement |
Effective Rate | (Billed - Addition Costs) ÷ Labor Hours (if labor hours is < 1, then it is rounded off to 1) |
Contribution Rate | Profit ÷ Labor Hours (if labor hours is < 1, then it is rounded off to 1) |
Ave. Hourly Labor Rate | Average of all hourly labor rate of all active technicians with a work type tagging | Target Hours | Budgeted hours to achieve the Target Total Cost Margin %, which can be set in the ConnectWise Settings for App Packages dashboard.
Gross Margin:
Gross Margin measures profitability and is calculated as follows:
...
Product Gross Margin | Product Revenue - Product Cost |
Labor Gross Margin | Labor Revenue - Labor Cost |
Gross Margin | Total Revenue - (Labor Cost + Product Cost) |
Margin % |
...
or Margin Percentage |
...
...
(Gross Margin |
...
÷ Total Revenue) * 100 |
...
Effective Rate | Labor Revenue ÷ Total Actual Hours |
Contribution Rate |
...
...
(Total Billed - (Labor Cost + Product Cost)) |
...
÷ Total Actual Hours |
Effective Rate:
Effective Rate represents the revenue generated per hour of labor and is calculated as:
Effective Rate = Labor Revenue / Total Actual Hours
Labor Gross Margin:
Labor Gross Margin assesses the profitability of labor-related revenue and expenses, calculated as:
Labor Gross Margin = Labor Revenue - Labor Cost
Product Gross Margin:
Product Gross Margin evaluates the profitability of product-related revenue and expenses, calculated as:
...
Margin | Profit ÷ Billed |
Actual Hours | Total recorded hours for an agreement |
These metrics offer a comprehensive view of your financial health, efficiency, and profitability. Understanding and utilizing these calculations within your widgets can help guide data-driven decisions, optimize costs, and strategize for revenue growth.