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
Jump to a section:
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 orders divided by total orders
- % 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. This includes shipping revenue, whereas Shopify's AOV does not.
- 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