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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:
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| Product Gross Margin | Product Revenue - Product Cost |
| Labor Gross Margin | Labor Revenue - Labor Cost |
| Gross Margin | Total Revenue - (Labor Cost + Product Cost) |
| Margin % |
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| or Margin Percentage |
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| (Gross Margin |
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| ÷ Total Revenue) * 100 |
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| Effective Rate | Labor Revenue ÷ Total Actual Hours |
| Contribution Rate |
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| (Total Billed - (Labor Cost + Product Cost)) |
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| ÷ 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:
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| 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.
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