Resource Library

Cost of goods sold as a percentage of revenue

This measure calculates the total annual cost of goods sold (COGS) as a percentage of revenue. COGS represents the cost of purchasing raw materials and manufacturing finished…

Value of materials and services per $1,000 revenue

This measure calculates the value of materials and series per $1,000 revenue. It is part of a set of Supplemental Information measures that help companies evaluate additional…

Ratio of purchases to revenue

This measure calculates the ratio of annual value of all materials and services purchased to revenue. It is part of a set of Supplemental Information measures that help…

Total number of purchase orders placed per finance shared services center employee responsible for creating/distributing purchase orders

A shared services center combines common or repetitive processes from multiple business units into one central location. This measure calculates the total number of purchase…

Cash-to-cash cycle time in days

This measure projects the amount of days it takes for an investment made to flow back into a company after it has been spent for raw materials. For services, this represents…

Percentage of total purchases procured via maverick buying

This measure calculates the percentage of total purchases procured via maverick buying, where an existing purchasing contract is ignored by employees. It is part of a set of…

Customer order cycle time in days

This measure calculates the average cycle time in days (including weekends) between order placement by the customer and order delivery to the customer for primary products…

Customer shipment to delivery cycle time in days

This measure calculates the cycle time in days from when the product is shipped until it ends with customer delivery and acceptance. It is a Cycle Time measure that helps…

Perfect order performance

This measure calculates the rate of perfect order performance, which refers to the act of flawlessly taking and fulfilling a customer order—including taking the order…

Total cost to perform the process group "procure materials and services" per $1,000 purchases

This measure calculates the total cost to perform the process group "procure materials and services" per $1,000 value of material and service purchases. Total process cost is…

Total cost to perform the process group "manage logistics and warehousing" per $1 billion revenue

This measure calculates the total cost to perform the process group "manage logistics and warehousing"—which plans, implements, and controls the forward and reverse flow and…

Total cost to perform the process group "manage logistics and warehousing" as a percentage of revenue

This measure calculates total cost as a percentage of revenue to perform the process group "manage logistics and warehousing". Total cost is the sum of personnel …

Finished goods inventory days of supply

This measure calculates total finished goods inventory days of supply by dividing "finished goods inventory" by the "value of transfers divided by 365 days." The value of…

Finished goods inventory turns

This measure calculates finished goods inventory turns by dividing cost of goods sold (COGS) for the year by the average value of month-end finished goods inventory for the…

Inventory carrying cost as a percentage of inventory value

This measure calculate inventory carrying cost as a percentage of inventory value. Inventory carrying cost includes opportunity cost/cost of capital (for the money tied up in…