Free Cash Flow Margin: What It Is and How to Improve It
Free cash flow margin is the share of every revenue dollar your store keeps as cash after it covers operating costs and reinvestment. It’s
Plain-English breakdowns of margin, cash flow, inventory, and Amazon economics, written for the operators running the business.
Contribution margin, COGS, pricing, promos
13-week forecasting, CCC, burn & runway
Reorder points, forecasting, landed cost
Budget vs actual, models, scenarios
Margin, CAC, retention & ops benchmarks
Ratios, KPI packs, public-company teardowns
FBA fees, ACoS/TACoS, reconciliation
Ecom accounting, COGS, cash vs accrual
Starting, funding, valuation, finance terms
Free cash flow margin is the share of every revenue dollar your store keeps as cash after it covers operating costs and reinvestment. It’s
You can turn a profit on every order and still watch your bank balance slide. The reason is net working capital — the cash
Order too early and you tie up cash in stock you don’t need yet. Order too late and you sell out before the next
MAP pricing is the lowest price a retailer is allowed to advertise your product for. Brands use it to keep one discounter from dragging
Cost of goods sold (COGS) is the direct cost of the goods you sold in a period, and on most ecommerce P&Ls it’s the
Your inventory turnover ratio counts how many times you sell through your average stock in a period. It’s the quickest read on whether cash
Inventory turnover tells you how fast a product sells. Gross margin tells you how much you keep when it does. On their own, each
Gross margin and contribution margin both measure what’s left after costs, but they subtract different costs and answer different questions. Gross margin asks whether
Your contribution margin ratio (CMR) is the percentage of each sale left after variable costs — the same money as your dollar contribution margin,
Keystone pricing is the oldest rule in retail: take what a product costs you and double it. That gives you a 100% markup, a
Inventory planning is how you decide what to reorder, how much, and when — before a stockout or a pile of dead stock makes
Whether you’re eyeing an exit or you’re curious what you’ve built, valuing a small business comes down to two numbers: what it earns for
