Other important ratios –These are operational not found in the P/L or Balance Sheet.
Revenue per Customer
This ratio was mentioned earlier but also belongs in the other important ratio category as it is one that is extremely important.
Direct Labor %
Tech labor divided by revenue. I have often said 3 things make profitability in this business: direct labor, advertising and materials. Keep them in line and we have profits. Keep any one of them out of line and we don’t.
# of Office people to production people
How effective is the office staff at controlling one of the three biggies mentioned above?
Marketing Spend
What % of revenue are you spending on marketing? Is it producing increased revenue? Is it being measured? Rather than looking at marketing spend as a percentage of total revenue a more useful ratio would be to look at marketing spend over new sales generated by the spend.
| OTHER IMPORTANT RATIOS | FORMULA |
| Revenue per Customer | Revenue / # of Customers |
| Direct Labor % | Direct Labor / Revenue |
| # of Office People to Production People | # Office People / # Production People |
| Marketing Expenditure | Total Marketing Spend / Revenue |
| DESCRIPTION | COMMERCIAL | RESIDENTIAL | WOOD DESTROYING | BED BUG | OTHERS |
| Revenue Per Customer | $1,439 | $418 | $793 | $702 | $847 |
| DESCRIPTION | TOTAL COMPANY |
| Direct Labor % | 20.20% |
| # of Office People to Production People | 4.1 |
| Marketing Expenditure | 6.30% |
