EBITDA
What EBITDA measures for an online business, how it is calculated from the accounts, and why it is the base most.
OpenHome / Metrics
Metrics worth watching
Seven figures, each defined precisely enough to be compared between years and between companies. Precision is the point; a metric measured two ways is worse than none.
A metric without a definition attached is an opinion.
Seller's discretionary earnings
What discretionary earnings measures for an owner-operated online business, which add-backs are legitimate and where.
OpenGross margin
How gross margin is calculated for an online shop, which costs belong above the line, and what different margin levels.
OpenAcquisition cost and lifetime value
How to measure what a new customer costs and what one is worth over time, and the ratio between the two that keeps an.
OpenInventory turns
How stock turnover is measured, what a low turn rate signals, and how the figure connects to the cash position of an.
OpenConversion rate
How conversion is measured for an online shop, why one site-wide figure is misleading, and which segments to separate.
OpenRepeat rate and churn
How repeat purchase behaviour is measured for an online shop, the difference between repeat rate and churn, and what.
Open