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Encore Strategic

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The 17 Encore Strategic Financial Benchmark metric calculations provide Benchmarking provides insight into a company's Financial KPIs. These metrics calculations provide the financial key performance indicators (KPIs) with data derived from expenses, revenue, and employee count. The 16 metrics calculated quarterly and monthly measure overall profitability , and the employees' contribution over revenue and net operating income by using data derived from Expenses, Revenue, and Employee count.

  Product Margin % 

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All accounts in the Encore Strategic Benchmarking app are classified to include account groups, categories, and subcategories which consist of all accounts that are directly mapped to that specific grouping. This consists of all accounts associated with their parent categories and any nested subcategories. By following this approach, any account that is mapped to the designated group, category, or subcategory, including those mapped to the nested categories and subcategories within the account hierarchy, will be incorporated. 

This article shows how the following metrics are calculated: 

Product Margin 

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The Product Margin metric shows a column chart with product margin percentages by quarter and a     A column chart showing Product Margin percentages by quarter and monthly layout of the selected range.     Product Margin It is product revenue minus product cost of goods sold (COGS) expressed as a percentage of product revenue. 

    Calculation: (Product Sales - Product COGS) / Product SalesSales 

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^{Data Source: Encore} mapping

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^mapping 

Account Grouping for Product Margin

Percent of Services to Total Revenue

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    A column chart showing the The Percent of Services to Total Revenue frequency by metric shows a column chart with the percentage of services to total revenue frequency by quarter and a monthly layout of the selected range.

    Percent of Services to Total Revenue is Total Service Revenue expressed as percentage of Total Revenue.

This is the total service revenue expressed as a percentage of total revenue.

Calculation:     Calculation:  Service Revenue / Total Revenue

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^{Data Source: Encore} mapping

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Account Grouping for Percent of Services to Total Revenue

• Service Revenue 
  

  Account Category	Account Subcategory
  Recurring Service Revenues	Managed Services
  	BCDR
  	Security
  Labor-Related Revenue	Block Hour Revenue
  	Time & Materials
  	Project Revenues
  VOIP Revenue
  Hardware As A Service Revenue

• Total Revenue 
  

  Account Group	Account Category	Account Subcategory
  Income	Product Sales	Hardware & Software
  		Cloud Resale
  	Special Product 1
  	Special Product 2
  	Recurring Service Revenues	Managed Services
  		BCDR
  		Security
  	Labor-Related Revenue	Block Hour Revenue
  		Time & Materials
  		Project Revenues
  	VOIP Revenue
  	Hardware As A Service Revenue
  	Miscellaneous Income
  	Returns & Allowances

Service Gross Profit Margin

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    A column chart showing  Service The metric Service Gross Profit Margin benchmark displays a column chart with service gross profit margin percentages by quarter and a monthly layout of the selected range.     Service Gross Profit Margin It is service revenue minus service cost of goods sold (COGS) expressed as a percentage of service revenue.

    Calculation:(Service Revenue - Service COGS) / Service Revenue

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^{Data Source: Encore} mapping

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^mapping 

Account Grouping for Service Gross Profit Margin 

• Service Revenue 
  

  Account Category	Account Subcategory
  Recurring Service Revenues	Managed Services
  	BCDR
  	Security
  Labor-Related Revenue	Block Hour Revenue
  	Time & Materials
  	Project Revenues
  VOIP Revenue
  Hardware As A Service Revenue

• Service COGS
  

  Account Category	Account Subcategory
  Recurring Service COGS	Managed Services Costs
  	BCDR
  	Security Costs
  Labor Costs	Technician Salaries
  	Technician Payroll Taxes
  	Technician Benefits
  	Project Costs
  VOIP Costs
  Hardware As A Service Costs

Percent of Recurring Revenues to Total Service

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Revenue 

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The Percent

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    A column chart showing the Percent of Recurring Revenues to Total Service Revenue frequency by metric has a column chart showing the percentage of recurring revenues to total service revenue frequency by quarter and monthly layout of the selected range.     Percent of Recurring Revenues to Total Service Revenue is Recurring Service Revenue It is recurring service revenue expressed as a percentage of Total Service Revenuetotal service revenue.

    Calculation:   Recurring Service Revenue / Total Service Revenue

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^{Data Source: Encore mapping} 

Account Grouping for Percent of Recurring Revenues to Total Service Revenue 

• Recurring Service Revenue 
  

  Account Category	Account Subcategory
  Recurring Service Revenues	Managed Services
  	BCDR
  	Security

• Total Service Revenue 
  

  Account Category	Account Subcategory
  Recurring Service Revenues	Managed Services
  	BCDR
  	Security
  Labor-related Revenue	Block Hour Revenue
  	Time & Materials
  	Project Revenues
  VOIP Revenue
  Hardware as a Service Revenue

Percent of Project and Installation Revenue to Total Service

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Revenue

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The metric Percent of Recurring Revenues to Total Service Revenue has a

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    A column chart showing  Percent of Project and Installation Revenue to Total Service revenue frequency by quarter and the percentage of recurring revenues to total service revenue frequency by quarter and a monthly layout of the selected range.     Percent of Project and Installation Revenue to Total Service revenue is Project and Installation Revenue It is recurring service revenue expressed as a percentage of Total Service Revenuetotal service revenue.

    Calculation: Project Revenue / Total Service RevenueRevenue 

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^{Data Source: Encore} mapping

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Account Grouping for Percent of Project and Installation Revenue to Total Service Revenue 

• Project Revenue 
  

  Account Category	Account Subcategory
  Labor-Related Revenue	Project Revenues

• Total Service Revenue 
  

  Account Category	Account Subcategory
  Recurring Service Revenues	Managed Services
  	BCDR
  	Security
  Labor-Related Revenue	Block Hour Revenue
  	Time & Materials
  	Project Revenues
  VOIP Revenue
  Hardware As A Service Revenue

Percentage of Other Non-Recurring Revenue to Total Service

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Revenue 

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The Percent of Service Salaries to Service Revenue metric is a

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    A column chart showing  Percentage of Other Non-Recurring Revenue to Total Service revenue frequency by the percentage of service salaries to service revenue frequency by quarter and monthly layout of the selected range.     Percentage of Other Non-Recurring Revenue to Total Service revenue is Other Non-Recurring Revenue It is service salaries expressed as a percentage of Total Service Revenuetotal service revenue.

    Calculation Calculation:  Other Non-Recurring Revenue / Total Service RevenueRevenue 

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^{Data Source: Encore} mapping

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Account Grouping for Percent of Project and Installation Revenue to Total Service Revenue 

• Other Non-Recurring Project Revenue 
  

  Account Category	Account Subcategory
  Labor-Related Revenue	Block Hour Revenue
  	Time & Materials
  	Project Revenues
  VOIP Revenue
  Hardware As A Service Revenue
  Miscellaneous Income

• Total Service Revenue 
  

  Account Category	Account Subcategory
  Recurring Service Revenues	Managed Services
  	BCDR
  	Security
  Labor-Related Revenue	Block Hour Revenue
  	Time & Materials
  	Project Revenues
  VOIP Revenue
  Hardware As A Service Revenue

Percent of Service Salaries to Service

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Revenue 

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The Percent      A column chart showing  Percent of Service Salaries to Service Revenue frequency by metric is a column chart showing the percentage of service salaries to service revenue frequency by quarter and a monthly layout of the selected range.      Percent of Service Salaries to Service Revenue is Service Salaries It is service salaries expressed as a percentage of Total Service Revenuetotal service revenue.

    Calculation: Technician Salaries / Service Revenue

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^{Data Source: Encore mapping}

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Account Grouping for Percent of Service Salaries to Service Revenue 

• Technician Salaries
  

  Account Group	Account Category	Account Subcategory
  COGS - Cost of Goods Sold	Labor Costs	Technician Salaries

• Service Revenue 
  

  Account Category	Account Subcategory
  Recurring Service Revenues	Managed Services
  	BCDR
  	Security
  Labor-Related Revenue	Block Hour Revenue
  	Time & Materials
  	Project Revenues
  VOIP Revenue
  Hardware As A Service Revenue

Sales Salaries and Commissions as a Percentage of

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Revenue 

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The Sales

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     A column chart showing  Sales Salaries and Commissions as a Percentage of Revenue frequency by metric displays a column chart with sales salaries and commissions as a percentage of revenue frequency by quarter and a monthly layout of the selected range.      Sales Salaries and Commissions as a Percentage of Revenue are Sales It is sales salaries plus commission expressed as a percentage of Total Revenuetotal revenue.

    Calculation: (Salaries + Commissions) / Total Revenue

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^{Data Source: Encore} mapping

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Account Groupings for Sales Salaries and Commissions as a Percentage of Revenue 

• Salaries + Commissions 
  

  Account Category	Account Subcategory
  Sales Expense	Salaries
  	Commissions

• Total Revenue 
  

  Account Group	Account Category	Account Subcategory
  Income	Product Sales	Hardware & Software
  		Cloud Resale
  	Special Product 1
  	Special Product 2
  	Recurring Service Revenues	Managed Services
  		BCDR
  		Security
  	Labor-Related Revenue	Block Hour Revenue
  		Time & Materials
  		Project Revenues
  	VOIP Revenue
  	Hardware As A Service Revenue
  	Miscellaneous Income
  	Returns & Allowances

Advertising and Marketing as a Percentage of

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Revenue 

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The Advertising

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     A column chart showing  Advertising and Marketing as a Percentage of Revenue frequency by metric shows a column chart with advertising and marketing as a percentage of revenue frequency by quarter and a monthly layout of the selected range.      Advertising and Marketing as a Percentage of Revenue It is advertising expense plus marketing expense expressed as a percentage of Total Revenuetotal revenue.

    Calculation:    (Advertising + Marketing) / Total Revenue

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^{Data Source: Encore} mapping

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Account Grouping for Advertising and Marketing as a Percentage of Revenue

• Advertising + Marketing 
  

  Account Group	Account Category	Account Subcategory
  COGS - Cost of Goods Sold	Sales Expense	Marketing
  Expenses	Advertising

• Total Revenue 
  

  Account Group	Account Category	Account Subcategory
  Income	Product Sales	Hardware & Software
  		Cloud Resale
  	Special Product 1
  	Special Product 2
  	Recurring Service Revenues	Managed Services
  		BCDR
  		Security
  	Labor-Related Revenue	Block Hour Revenue
  		Time & Materials
  		Project Revenues
  	VOIP Revenue
  	Hardware As A Service Revenue
  	Miscellaneous Income
  	Returns & Allowances

Admin as a Percentage of Revenue 

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The Admin as a Percentage of Revenue

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     A metric has a column chart showing  Admin admin as a Percentage percentage of Revenue revenue frequency by quarter and a monthly layout of the selected range.      Admin as a Percentage of Revenue is Admin Expenses It is admin expenses expressed as a percentage of Total Revenuetotal revenue.

    Calculation:   Total Admin Expenses / Total Revenue

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^{Data Source: Encore mapping}

  Gross Profit after sales expense

Account Groupings for Admin as a Percentage of Revenue 

• Total Admin Expenses 
  

  Account Group	Account Category
  Expenses	Salaries - Admin

• Total Revenue 
  

  Account Group	Account Category	Account Subcategory
  Income	Product Sales	Hardware & Software
  		Cloud Resale
  	Special Product 1
  	Special Product 2
  	Recurring Service Revenues	Managed Services
  		BCDR
  		Security
  	Labor-Related Revenue	Block Hour Revenue
  		Time & Materials
  		Project Revenues
  	VOIP Revenue
  	Hardware As A Service Revenue
  	Miscellaneous Income
  	Returns & Allowances

Gross Profit After Sales Expense 

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The Gross Profit After Sales Expense metric shows the Gross Profit After Sales Expense frequency by quarter and a      A column chart showing  Gross Profit after sales expense frequency by quarter and monthly layout of the selected range.      Gross Profit after sales expense is It is the Total Revenue less the Total Cost of goods sold minus sales expenses.

    Calculation:  (Total Revenue - COGS) - Sales Expenses Expenses 

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^{Data Source: Encore} mapping

   Service Revenue per Service Person

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Account Groupings for Gross Profit After Sales Expense 

• Total Revenue 
  

  Account Group	Account Category	Account Subcategory
  Income	Product Sales	Hardware & Software
  		Cloud Resale
  	Special Product 1
  	Special Product 2
  	Recurring Service Revenues	Managed Services
  		BCDR
  		Security
  	Labor-Related Revenue	Block Hour Revenue
  		Time & Materials
  		Project Revenues
  	VOIP Revenue
  	Hardware As A Service Revenue
  	Miscellaneous Income
  	Returns & Allowances

• COGS 
  

  Account Group	Account Category	Account Subcategory
  COGS - Cost of Goods Sold	Product COGS	Hardware & Software Costs
  		Cloud Resale COGS
  		Special Product 1
  		Special Product 2
  	Recurring Service COGS	Managed Services Costs
  		BCDR
  		Security Costs
  	Labor Costs	Technician Salaries
  		Technician Payroll Taxes
  		Technician Benefits
  		Project Costs
  	VOIP Costs
  	Hardware As A Service Costs
  	Sales Expense	Salaries
  		Commissions
  		Marketing
  		Travel and Lodging
  		Training
  		Other

Service Revenue per Service Person 

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The metric Service Revenue per Service Person is a column chart showing the frequency of Service Revenue per Service Person by quarter and a       A column chart showing  Service Revenue per Service Person frequency by quarter and monthly layout of the selected range.       Service Revenue per Service Person is a ratio that roughly It measures service revenue generated by each service person.

    Calculation:   Service Revenue / Service Person Count

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^{Data Source: Encore mapping for Service Revenue and Encore Settings for Service Person Count} 

Account Grouping for Service Revenue per Service Person*

• Service Revenue 
  

  Account Category	Account Subcategory
  Recurring Service Revenues	Managed Services
  	BCDR
  	Security
  Labor-Related Revenue	Block Hour Revenue
  	Time & Materials
  	Project Revenues
  VOIP Revenue
  Hardware As A Service Revenue

  
  

  *Service Person Count

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• represents the calculated average of Service Employee Headcount from the Encore Benchmarking Employee Headcount Form within the specified reporting period.

Revenue per Employee 

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The metric 

Revenue per Employee

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      A is a column chart showing  Revenue Revenue per Employee frequency by quarter and a monthly layout of the selected range.       Revenue per Employee is a it is the ratio that roughly measures revenue generated by each employee.

     CalculationCalculation:   Revenue / Employee CountCount 

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Data Source: Encore mapping for Revenue and Encore Settings for Employee Count 

Account Grouping for Revenue per Employee 

• Revenue 
  

  Account Group	Account Category	Account Subcategory
  Income	Product Sales	Hardware & Software
  		Cloud Resale
  	Special Product 1
  	Special Product 2
  	Recurring Service Revenues	Managed Services
  		BCDR
  		Security
  	Labor-Related Revenue	Block Hour Revenue
  		Time & Materials
  		Project Revenues
  	VOIP Revenue
  	Hardware As A Service Revenue
  	Miscellaneous Income
  	Returns & Allowances

  
  

  Employee Count

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• represents the calculated average of Service Employee, Sales, and Admin Headcount totals from the Encore Benchmarking Employee Headcount Form within the specified reporting period.

Net Operating Income 

Anchor
netoperatingincome netoperatingincome

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The metric Net Operating Income shows net operating income percentages by quarter and a

  Net Operating Profit Per employee

     A column chart showing  Net Operating Profit Per employee frequency by quarter and monthly layout of the selected range.

     Net Operating Profit Per employee is a ratio that roughly measures Net Operating Profit generated by each employee.

    Calculation: (Revenue - (COGS + Expense + Depreciation + Amortization)) / Employee Count

It is Total Revenue minus Cost of Goods Sold(COGS), Expenses, Depreciation, and Amortization. 

Calculation: Total Revenue – (COGS + Expense - Taxes)

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^{Data Source: Encore} mapping for Net Operating Profit and Encore Settings for Employee Count

  Net Operating Income

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Account Groupings for Net Operating Income 

• Total Revenue 
  

  Account Group	Account Category	Account Subcategory
  Income	Product Sales	Hardware & Software
  		Cloud Resale
  	Special Product 1
  	Special Product 2
  	Recurring Service Revenues	Managed Services
  		BCDR
  		Security
  	Labor-Related Revenue	Block Hour Revenue
  		Time & Materials
  		Project Revenues
  	VOIP Revenue
  	Hardware As A Service Revenue
  	Miscellaneous Income
  	Returns & Allowances

• COGS 
  

  Account Group	Account Category	Account Subcategory
  COGS - Cost of Goods Sold	Product COGS	Hardware & Software Costs
  		Cloud Resale COGS
  		Special Product 1
  		Special Product 2
  	Recurring Service COGS	Managed Services Costs
  		BCDR
  		Security Costs
  	Labor Costs	Technician Salaries
  		Technician Payroll Taxes
  		Technician Benefits
  		Project Costs
  	VOIP Costs
  	Hardware As A Service Costs
  	Sales Expense	Salaries
  		Commissions
  		Marketing
  		Travel and Lodging
  		Training
  		Other

• Expenses 
  

  Account Group	Account Category	Account Subcategory
  Expenses	Computer and Internet
  	Continuing Education
  	Dues and Subscriptions
  	Employee Benefits
  	Insurance
  	Legal and Professional
  	Licenses and Permits
  	Miscellaneous
  	Office Expense
  	Officer Salaries
  	Repairs and Maintenance
  	Salaries - Admin
  	Printing
  	Accounting
  	Advertising
  	Automobile Expense
  	Bank charges
  	Books and publications
  	Contributions
  	Postage and Delivery
  	Rent
  	Telephone
  	Travel
  	Utilities
  	Website
  	Meals & Entertainment
  	Taxes	Taxes - Business
  		Taxes - Payroll

Net Operating Profit per Employee 

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The metric Net Operating Profit per Employee shows a chart with each employee's net operating profit frequency by quarter and a      A column chart showing  Net Operating Income percentages by quarter and monthly layout of the selected range.

     Net Operating Income is Total Revenue minus Cost of Goods Sold(COGS),Expenses,Depreciation and Amortization.

It is the ratio that roughly measures net operating profit generated by each employee.

Calculation: Net Operating Income / Employee Count

Image Added  Image Added    Calculation:  Revenue - (COGS + Expense + Depreciation + Amortization)

^{Data Source: Encore mapping}

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^{for Net Operating Profit and Encore Settings for Employee Count} 

Days Sales Outstanding (DSO)

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The metric      A column chart showing Days Sales Outstanding displays a column chart with the sales outstanding in days for the current calendar period     Days Sales Outstanding . It is a measure of the average number of days that it takes a company to collect payment for a sale. 

    Calculation: DSO = (Average Accounts Receivable / Total Revenue) * 365                        Average Accounts Receivable = (Accounts Receivable Beginning + Accounts Receivable End)/2number of days in the specified reporting period

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^{Data Source: Encore} mapping^mapping 

Account Grouping for DSO 

• Accounts Receivable 
  

  Account Category	Account Subcategory
  Accounts receivable (A/R)	Accounts receivable

• Total Revenue 
  

  Account Group	Account Category	Account Subcategory
  Income	Product Sales	Hardware & Software
  		Cloud Resale
  	Special Product 1
  	Special Product 2
  	Recurring Service Revenues	Managed Services
  		BCDR
  		Security
  	Labor-Related Revenue	Block Hour Revenue
  		Time & Materials
  		Project Revenues
  	VOIP Revenue
  	Hardware As A Service Revenue
  	Miscellaneous Income
  	Returns & Allowances

Related Topics 

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