Income Statement - Metric Definitions

The income statement gives you a detailed breakdown of your P&L metrics on a daily, weekly, or monthly basis within whichever time period you choose.

Metric definitions

💡Tip: Definitions for each metric can also be found in the report itself, either by hovering your cursor over a small gray "i" icon or by clicking on the name of the metric .

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Statement header

  • Net sales - Sales after both discounts and refunds have been deducted, including tax
  • Marketing costs - Total ad spend across all marketing accounts integrated with Lifetimely and/or manually entered as a marketing cost in the "Custom costs" tab
  • COGS - Cost of goods sold. 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 subtracting discounts and refunds
    • Product revenue - Sales from products before subtracting discounts and refunds
    • Shipping revenue - Total shipping costs paid for by customers before subtracting discounts and refunds
  • Discounts - Total value of coupon code discounts as calculated in Shopify. Sale discounts are not included.
  • Refunds - Total value of refunds
  • Net sales - Sales (including taxes) after both discounts and refunds have been deducted.
  • Taxes - Total taxes assessed on orders
  • COGS - Total Cost of goods sold. Product costs + shipping costs + transaction fees + fulfillment expenses.
    • Products sold - Total cost of goods sold (based on Shopify's "cost per item" field and/or costs entered in the "Product costs" tab)
    • Shipping - Total shipping costs (calculated according to rates set in the "Shipping costs" tab)
    • Transaction fees - Total transaction costs (calculated according to rates set in the "Transaction costs" tab in Lifetimely)
    • Fulfillment expense - Total handling costs (calculated according to rates set in the "Handling costs" tab)
  • Marketing - Total ad spend across all marketing accounts integrated with Lifetimely and/or manually entered as a marketing cost in the "Custom costs" tab
  • Contribution margin - Total sales minus discounts, refunds, taxes, COGS, and marketing spend
  • Operating expenses - Total custom costs (based on costs manually entered in the "Custom costs" tab that aren't designated as marketing costs)
  • Net profit - Total sales minus discounts, refunds, taxes, COGS, marketing spend, and operating expenses. (Contribution margin - Operating expenses)

KPIs (Key Performance Indicators)

  • % Gross margin - Gross margin (net sales - taxes - COGS) divided by net sales
  • % Net margin - Net profit divided by net sales
  • % Refunds - Total value of refunds divided by net sales
  • % COGS - Total value of COGS divided by net sales
  • % Marketing - Total value of marketing spend divided by net sales

Acquisition

  • Blended CAC - Total marketing spend divided by the number of new customers
  • Blended ROAS - Net sales divided by total marketing spend
  • New customer ROAS - New customer net sales divided by total marketing spend
  • New customers - Number of new customers in the time period
  • New customer sales - New customer net sales
  • Repeat customers - Number of repeat customers in the time period
  • Repeat customer sales - Repeat customer net sales
  • % Repeat - Number of repeat customers divided by total customers
  • % Repeat sales - Repeat customer net sales divided by net sales

Orders

  • Orders - Number of orders in the time period
  • AOV - (Average Order Value) Sales (after subtracting discounts but before subtracting refunds) divided by number of orders in the time period
  • New customer AOV - New customer net sales divided by the number of new customer orders in the time period
  • Repeat customer AOV - Repeat customer net sales divided by the number of repeat customer orders in the time period
  • Average number of items - Average number of total quantity of line items across all orders

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