Profit & margin basics
The core P&L ratios every owner should be able to read at a glance.
Gross margin
what stays after the cost of what you sold.
Net margin
what is left after every cost is paid.
Contribution margin explained
what each sale leaves on the table.
Operating margin vs net margin
two profit ratios, two different audiences.
Markup vs margin
markup vs margin on the same sale.
EBIT vs EBITDA
two profit numbers, one honest, one flattering.
Costs & break-even
How fixed and variable costs decide the revenue a day has to clear.
Café & restaurant
The metrics that decide whether a hospitality day paid.
Prime cost (restaurant)
prime cost, the one controllable number.
Food cost percentage
food cost %, the daily kitchen number.
Labour cost percentage (restaurant)
labour cost %, fixable tomorrow.
Average check (avg ticket)
avg check, weekly drift signal.
Cover count (restaurant)
covers, the guest-level metric.
Retail & inventory
How fast stock turns into profit on a shop floor.
Salon & barbershop
Chair-level economics for service businesses.
E-commerce & marketing
The acquisition and value metrics behind an online store’s profit.
Cash & runway
Whether the business can pay its way to the next milestone.