Net Profit
net_profit
Overview
Net profit is the total revenue from product sales after deducting all costs, including advertising spend, cost of goods, shipping costs, payment gateway costs, handling fees, taxes, and any other operational expenses.
Net Profit = Order Revenue − Refunds − Ad Spend − Total Costs
The calculation is based on data in the Blended Stats table.
Detailed Breakdown
The formula above is derived from the following components:
-
Order Revenue =
SUM(order_revenue)
--> Orders tableorder_revenue
= Total revenue after adjustments such as discounts, shipping, fees, and taxes.
-
Refunds =
SUM(refund_money)
--> Refunds tablerefund_money
=ABS(SUM(total_refunded_price))
-
Ad Spend =
spend + custom_ad_spend
spend
=SUM(spend)
--> Ads tablecustom_ad_spend
=SUM(IF(is_ad_spend, amount, 0))
--> Custom Spend table
-
Total Costs =
cogs - total_refunded_cogs + payment_gateway_costs + shipping_costs + custom_excl_ad_spend + handling_fees + taxes
cogs
=SUM(cost_of_goods)
--> Orders tabletotal_refunded_cogs
=ABS(SUM(total_refunded_cogs))
--> Refunds tablepayment_gateway_costs
=SUM(payment_gateway_costs)
--> Orders tableshipping_costs
=SUM(shipping_costs)
--> Orders tablecustom_excl_ad_spend
=SUM(IF(is_ad_spend = false, amount, 0))
--> Custom Spend tablehandling_fees
=SUM(handling_fees)
--> Orders tabletaxes
=SUM(taxes)
--> Orders table
Insights and Actions
Net Profit provides a comprehensive view of your business's financial health, showing the revenue left after deducting all expenses, including advertising and operational costs.
- Assess Business Performance: Use net profit to understand how well your business is performing financially. A positive net profit indicates healthy operations, while a negative figure may require adjustments to reduce costs or increase revenue.
- Identify Cost-Saving Opportunities: Analyze components like Ad Spend, COGS, and Shipping Costs to pinpoint areas for cost optimization. Reducing inefficiencies can directly improve net profit.
- Guide Investment Decisions: Use net profit as a benchmark to evaluate the financial impact of expanding into new marketing channels or increasing operational expenses.
Related Metrics
- Blended ROAS: Helps gauge overall ad efficiency in driving revenue, complementing net profit analysis.
- Total Costs: Breaks down all operational expenses, offering insight into areas where cost reductions might improve net profit.
- Refunds: Tracks the financial impact of refunds on profitability, highlighting trends that may require operational improvements.
Example Use
Prompt
What's my net profit the past 7 days?
Response
Query
SELECT
SUM(bst.order_revenue) - SUM(bst.refund_money) - SUM(bst.spend) - SUM(bst.total_costs) AS net_profit
FROM
blended_stats_tvf () AS bst
WHERE
bst.event_date BETWEEN CURRENT_DATE() - 7 AND CURRENT_DATE() - 1
Updated 16 days ago