LTV to CAC: Align the Definitions and Check Payback
Build a margin-based lifetime value estimate, compare it with CAC and see why an attractive ratio can still create a cash-flow problem.
Customer Churn: Cohorts, Retention and the Annualization Trap
Measure churn from a starting cohort, distinguish it from net customer growth and calculate annual cohort loss from monthly churn.
MRR vs ARR: Normalize Subscriptions Without Confusing Cash and Revenue
Calculate MRR and ARR for monthly and annual plans, and distinguish recurring run rate from cash collection and accounting revenue.
Free Shipping Thresholds: Cover Shipping Without Hiding the Cost
Estimate a free-shipping threshold from margin and fulfillment costs, then test mixed baskets, fees and customer behavior.
Economic Order Quantity: Use EOQ Without Ignoring Real Constraints
Calculate EOQ, compare nearby pack sizes and understand the assumptions behind annual ordering and holding-cost estimates.
Reorder Point vs Safety Stock: Know When to Replenish
Distinguish reorder point from safety stock and order quantity, with demand, lead-time and inventory-position examples.
Inventory Turnover and Inventory Days: Handle Seasonality Correctly
Calculate inventory turnover and days on hand, understand the 365-day assumption and avoid misleading averages in seasonal businesses.
COGS and Inventory: Reconcile Opening Stock, Purchases and Closing Stock
Reconcile cost of goods sold from inventory balances, identify valuation mistakes and understand how a stock-count error affects gross profit.
Revenue Growth: Compare Periods and Avoid Percentage Traps
Measure revenue growth using comparable periods, understand percentage reversals and combine segment growth without averaging errors.
Average Order Value: Calculate It Without Misreading Growth
Calculate AOV across segments correctly, account for refunds and distinguish a bigger basket from better profit per customer.