by Peter Dragone | Feb 23, 2023 | Peter Dragone Blog, Planning
In my last blog I discussed Contribution Margin: Company revenues minus variable expenses. It’s the money left over to pay operating expenses. Once those operating expenses are deducted, what remains is Earnings before Interest, Taxes, Depreciation and Amortization...
by Peter Dragone | Feb 17, 2023 | Peter Dragone Blog, Planning
As my previous blog suggested, gross margin is a critical profitability metric. Yet, it should not be looked at in isolation. A 50% gross margin on an ecommerce product may seem adequate, but it is only part of the picture. What if your selling expenses are high? You...
by Peter Dragone | Feb 6, 2023 | Peter Dragone Blog, Planning
Investors as famous as Warren Buffet have dismissed profitability, as measured by EBITDA, as a suitable corporate financial metric, favoring “Owner’s Earnings” or Operating Cash Flow instead. Given Mr Buffet’s record of success, it is hard to argue the point . . . on...
