Purpose
This measure represents a key profitability indicator used to enable comparisons across segments, such as:
-
Products
-
Customers
-
Regions
This measure also support the definition and tracking of profitability targets.
Business Context
Pocket Margin Rate expresses net profitability as a percentage of revenue. By incorporating all margin leakage elements, it provides a normalized view of performance that allows meaningful comparison across segments of different sizes and revenue levels.
Definition
The measure calculates pocket margin divided by total revenue over the Agent’s filtered scope.
Business Formula
Pocket Margin Rate (%) = (Sum of Pocket Margin / Sum of Revenue)
Agent Expression
SUM(PocketMargin) / NULLIF(SUM(Revenue), 0)