Income Statement - Metric Definitions
At a glance: The income statement (also known as a profit and loss statement) in Lifetimely is a powerful tool for tracking your store’s financial performance. It provides insights into your revenue, costs, and profitability - helping you make data-driven decisions to optimize your ecommerce business.
Categories
Jump to:
- Key terms and definitions
- Statement header metrics
- Income statement metrics
- KPIs (Key Performance Indicators)
- Acquisition metrics
- Order metrics
Key terms and definitions
- Gross Revenue: Total income generated from sales before any deductions.
- Cost of Goods Sold (COGS): Direct costs of producing or purchasing the products you sell.
- Gross Profit: Revenue – COGS. Indicates how much money you’re making before expenses.
- Operating Expenses: Costs of running your store, such as ad spend, software subscriptions, and salaries.
- Net Income: Final profit or loss after deducting all expenses from gross profit.
Tip: Definitions for each metric can also be found in the report by hovering your cursor over the small grey “i” icon or clicking on the metric name.
Statement header
- Net sales: Sales after discounts and refunds, including tax.
- Marketing costs: Total ad spend across all integrated marketing accounts, plus any manual entries in the Custom costs tab.
- COGS: Product costs + shipping costs + transaction fees + fulfillment expenses.
- Net profit: Sales after discounts minus all costs (refunds, taxes, COGS, marketing costs, and operating expenses).
Income statement
- Sales: Total sales before discounts and refunds.
- Product revenue: Sales from products before discounts and refunds.
- Shipping revenue: Shipping costs paid by customers before discounts and refunds.
- Discounts: Value of coupon code discounts from Shopify (excludes line-item discounts).
- Refunds: Total value of refunds.
- Net sales: Sales (including taxes) after discounts and refunds.
- Taxes: Total taxes assessed on orders.
Note: Taxes may include VAT, Sales Tax, or GST, depending on your country.
- COGS: Product costs + shipping costs + transaction fees + fulfillment expenses.
- Products sold: Cost of goods sold, based on Shopify’s cost per item and/or costs entered in the Product costs tab.
- Shipping: Shipping costs, calculated from the Shipping costs tab.
- Transaction fees: Payment processor fees, set in the Transaction costs tab.
- Fulfillment expense: Handling costs, set in the Handling costs tab.
- Marketing: Total ad spend from integrations + manually entered marketing costs.
- Contribution margin: Sales – discounts – refunds – taxes – COGS – marketing spend.
- Operating expenses: Custom costs entered in the Custom costs tab that are not marketing costs.
- Net profit: Sales – discounts – refunds – taxes – COGS – marketing spend – operating expenses (i.e., Contribution margin – Operating expenses).
Note: Lifetimely calculates Net Sales differently from Shopify.
- Shopify: Gross Sales – Discounts – Refunds (excludes Shipping Revenue)
- Lifetimely: Product Revenue + Shipping Charged – Discounts – Refunds – Taxes
KPIs (Key Performance Indicators)
- % Gross margin: (Net sales – taxes – COGS) ÷ Net sales
- % Net margin: Net profit ÷ Net sales
- % Refunds: Refunds ÷ Net sales
- % COGS: COGS ÷ Net sales
- % Marketing: Marketing spend ÷ Net sales
Acquisition
- Blended CAC: Total marketing spend ÷ number of new customers
- Blended ROAS: Net sales ÷ total marketing spend
- New customer ROAS: New customer net sales ÷ total marketing spend
- New customers: Number of new customers in the time period
- New customer sales: Net sales from new customers
- Repeat customers: Number of repeat customers in the time period
- Repeat customer sales: Net sales from repeat customers
- % Repeat: Repeat orders ÷ total orders
- % Repeat sales: Repeat customer net sales ÷ net sales
Orders
- Orders: Total number of orders in the time period
- AOV (Average Order Value): Sales (after discounts but before refunds) ÷ number of orders.
Note: Lifetimely’s AOV includes shipping revenue, whereas Shopify’s AOV does not.
- New customer AOV: New customer net sales ÷ new customer orders.
- Repeat customer AOV: Repeat customer net sales ÷ repeat customer orders.
- Average number of items: Average total quantity of line items across all orders.