What are Honest Co.’s gross margins (and some rules of thumb for figuring this out)

2017-06-11T19:44:42-06:00By |Categories: Finance|Tags: , , , , |

This is a Quora questions I was asked.  Here is my answer I did a quick search in my industry source and did not find anything that specific. Here are some quick metrics to make a guess: As of 2016, they are north of $300 mm in sales; Unprofitable; Raised $220 mm to date from [...]

Separate investment costs from your operating costs in the profit and loss statement

2016-11-04T09:53:42-06:00By |Categories: Finance|Tags: , , , , |

This article talks about how to separate investment costs from your operating costs in the profit and loss statement so that you have good numbers from which to make meaningful analysis. P&L Cost Buckets In my P&L, I like to group operating costs into the following buckets:  COGS, marketing, and operations.  There are many expense line [...]

How to use margins and benchmarks in financial statements for a CPG or consumer product business

2016-12-19T19:45:25-07:00By |Categories: Finance|Tags: , , , , , |

This post demonstrates how to use margins and benchmarks in financial statements for a CPG or consumer product business. Margins Defined By margins, I mean an expense line item that is relative to net profit, expressed in percentage.  Figure 1 is a basic example with the key margins to which we will pay attention. Figure [...]