AOV
Average order value: total revenue divided by the number of orders in the same reporting period.
Glossary
Useful terms, without the jargon.
Short definitions for concepts that appear across NumLuma’s business, money, work and project calculators.
Billable hours
Hours charged to a client or project, distinct from non-billable business time such as administration or sales.
Cost per acquisition
Campaign spend divided by the number of defined conversions or acquisitions. Often abbreviated CPA.
Days inventory
An approximate measure of how many days inventory remains on hand, commonly estimated as 365 divided by annual inventory turnover.
Gratuity
A tip or service amount added to a bill. A service charge may or may not function as gratuity depending on the bill and local practice.
Project contingency
An extra allowance added to a project estimate to cover defined uncertainty in time, cost or scope.
Revenue goal
The sales amount required to reach a modeled profit target under an assumed profit margin.
Usable coverage
The practical area a product can cover after constraints such as cuts, pattern repeat or application loss are considered.
Board foot
A lumber volume equal to a board 1 inch thick, 12 inches wide and 1 foot long.
CAGR
Compound annual growth rate: the constant annual rate that would take a beginning value to an ending value over a period of years.
Contribution margin
Selling price minus variable cost. It shows how much each unit contributes toward fixed costs and profit.
Cubic yard
A volume equal to 27 cubic feet, commonly used for concrete, soil, gravel and mulch.
Gross margin
Gross profit divided by revenue, expressed as a percentage.
Gross profit
Revenue minus cost of goods sold.
Inventory turnover
Cost of goods sold divided by average inventory, showing how many times inventory is cycled through during a period.
L/100km
Liters of fuel used to travel 100 kilometers. Lower values represent better fuel economy.
LCM
Least common multiple: the smallest positive whole number divisible by each of the given integers.
LTV
Customer lifetime value: an estimate of value generated by a customer across the relationship. NumLuma’s LTV tool uses gross-profit value.
Net margin
Net profit divided by revenue, expressed as a percentage after all included expenses.
Present value
The current equivalent of a future amount after applying a discount rate over time.
GCD
Greatest common divisor: the largest positive whole number that divides two integers without a remainder.
Break-even point
The sales volume where total revenue equals total costs, so profit is zero.
CAC
Customer acquisition cost: acquisition spending divided by the number of new customers acquired.
Compound interest
Interest calculated on both the original principal and previously accumulated interest.
Conversion rate
The percentage of visitors or sessions that complete a defined action.
CPA
Cost per acquisition: campaign spend divided by the number of conversions or acquisitions.
CPC
Cost per click: advertising spend divided by clicks.
CPM
Cost per thousand impressions: advertising spend per 1,000 ad impressions.
CTR
Click-through rate: clicks divided by impressions, expressed as a percentage.
Gross pay
Pay before taxes, deductions and other withholdings.
Markup
The amount added above cost, usually expressed as a percentage of cost.
Margin
Profit expressed as a percentage of revenue.
Principal
The starting amount of money borrowed or invested, before interest.
ROI
Return on investment: gain or loss relative to the amount invested.
ROAS
Return on ad spend: revenue attributed to advertising divided by ad spend.
Waste allowance
Extra material added to an estimate to account for cuts, breakage, mistakes or irregular layouts.