The Calculation for Encore Benchmarking

Encore Strategic Benchmarking provides insight into a company's financial key performance indicators (KPIs) by using 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.

This article shows how the following metrics are calculated: 

Product Margin 

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

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

Data Source: Encore mapping 

Percent of Services to Total Revenue

The Percent of Services to Total Revenue metric shows a column chart with the percentage of services to total revenue frequency by quarter and a monthly layout of the selected range. This is the total service revenue expressed as a percentage of total revenue.

Calculation: Service Revenue / Total Revenue

Data Source: Encore mapping 

Service Gross Profit Margin

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. 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

Data Source: Encore mapping

Percent of Recurring Revenues to Total Service Revenue 

The Percent of Recurring Revenues to Total Service Revenue 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. It is recurring service revenue expressed as a percentage of total service revenue.

Calculation: Recurring Service Revenue/ Total Service Revenue

Data Source: Encore mapping 

Percent of Project and Installation Revenue to Total Service Revenue

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

Calculation: Project Revenue / Total Service Revenue 

Data Source: Encore mapping

Percentage of Other Non-Recurring Revenue to Total Service Revenue 

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

 Calculation: Other Non-Recurring Revenue/ Total Service Revenue 

Data Source: Encore mapping 

Percent of Service Salaries to Service Revenue 

The Percent of Service Salaries to Service Revenue 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. It is service salaries expressed as a percentage of total service revenue.

Calculation: Technician Salaries / Service Revenue

Data Source: Encore mapping

Sales Salaries and Commissions as a Percentage of Revenue 

The Sales Salaries and Commissions as a Percentage of Revenue 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. It is sales salaries plus commission expressed as a percentage of total revenue.

Calculation: (Salaries + Commissions) / Total Revenue

Data Source: Encore mapping 

Advertising and Marketing as a Percentage of Revenue 

The Advertising and Marketing as a Percentage of Revenue 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. It is advertising expense plus marketing expense expressed as a percentage of total revenue.

Calculation: (Advertising + Marketing) / Total Revenue

Data Source: Encore mapping

Admin as a Percentage of Revenue 

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

Calculation: Total Admin Expenses / Total Revenue

Data Source: Encore mapping

Gross Profit After Sales Expense 

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

Calculation: (Total Revenue - COGS) - Sales Expenses 

Data Source: Encore mapping 

Service Revenue per Service Person 

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

Calculation: Service Revenue / Service Person Count

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

Revenue per Employee 

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

Calculation: Revenue / Employee Count 

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

Net Operating Profit per Employee 

The metric Net Operating Profit per Employee shows a chart with each employee's net operating profit frequency by quarter and a monthly layout of the selected range. It is the ratio that roughly measures net operating profit generated by each employee.

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

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

Net Operating Income 

The metric Net Operating Income shows net operating income percentages by quarter and a monthly layout of the selected range. It is Total Revenue minus Cost of Goods Sold(COGS), Expenses, Depreciation, and Amortization. 

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

Data Source: Encore mapping

Days Sales Outstanding (DSO) 

The metric Days Sales Outstanding displays a column chart with the sales outstanding in days for the current calendar period. 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) / 2

Data Source: Encore mapping