{"product_id":"printed-circuit-board-kpi-metrics","title":"Tracking 7 Core KPIs for Printed Circuit Board Manufacturing","description":"\u003cdiv class=\"container_new_design\"\u003e\n\u003cdiv class=\"text-section text-1_new_design\"\u003e\n\u003cdiv class=\"line_top\"\u003e\u003c\/div\u003e\n\u003ch2\u003eKPI Metrics for Printed Circuit Board (PCB)\u003c\/h2\u003e\n\u003cp\u003eTo succeed in Printed Circuit Board (PCB) manufacturing, you must shift focus from raw revenue to margin quality and operational efficiency Your business model depends heavily on high-value products like Flex Rigid Medical ($1,200 ASP) and High Frequency RF ($800 ASP) to offset lower-margin Standard Multilayer ($150 ASP) The initial $204 million in capital expenditures (CAPEX) requires rapid scaling you must hit break-even by January 2027—just 13 months in Track seven core metrics weekly, focusing on Gross Margin % (target \u003cstrong\u003e80%+\u003c\/strong\u003e) and First Pass Yield (target \u003cstrong\u003e95%\u003c\/strong\u003e) to manage costs and quality\n\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"image-section image-1_new_design\" id=\"main_article_image\"\u003e\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\n\u003cspan style=\"color: #6067F2;\"\u003e7 KPIs to Track for \u003c\/span\u003ePrinted Circuit Board (PCB)\u003c\/h2\u003e\u003cbr\u003e\n\u003ctable id=\"dwnld_tbl_id\"\u003e\n\u003ctr\u003e\n\u003cth\u003e#\u003c\/th\u003e\n\u003cth\u003eKPI Name\u003c\/th\u003e\n\u003cth\u003eMetric Type\u003c\/th\u003e\n\u003cth\u003eTarget \/ Benchmark\u003c\/th\u003e\n\u003cth\u003eReview Frequency\u003c\/th\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e1\u003c\/td\u003e\n\u003ctd\u003eAverage Selling Price (ASP)\u003c\/td\u003e\n\u003ctd\u003eMeasures revenue quality\u003c\/td\u003e\n\u003ctd\u003eTarget ASP is $343+ in 2026, reviewed monthly to ensure high-value products are prioritized\u003c\/td\u003e\n\u003ctd\u003eMonthly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e2\u003c\/td\u003e\n\u003ctd\u003eGross Margin Percentage (GM%)\u003c\/td\u003e\n\u003ctd\u003eIndicates core manufacturing profitability\u003c\/td\u003e\n\u003ctd\u003eTarget 80%+, reviewed monthly to track cost control against fluctuating material prices\u003c\/td\u003e\n\u003ctd\u003eMonthly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e3\u003c\/td\u003e\n\u003ctd\u003eFirst Pass Yield (FPY)\u003c\/td\u003e\n\u003ctd\u003eMeasures quality efficiency\u003c\/td\u003e\n\u003ctd\u003eTarget 95%+, reviewed daily to minimize scrap and rework costs\u003c\/td\u003e\n\u003ctd\u003eDaily\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e4\u003c\/td\u003e\n\u003ctd\u003eCapacity Utilization Rate\u003c\/td\u003e\n\u003ctd\u003eMeasures asset efficiency\u003c\/td\u003e\n\u003ctd\u003eTarget 70%+, reviewed weekly to justify CAPEX and scale production staff\u003c\/td\u003e\n\u003ctd\u003eWeekly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e5\u003c\/td\u003e\n\u003ctd\u003eOverhead Allocation Rate\u003c\/td\u003e\n\u003ctd\u003eTracks indirect costs absorbed by production\u003c\/td\u003e\n\u003ctd\u003eReviewed monthly to ensure fixed costs like Plant Utilities ($8,000\/month) are spread efficiently\u003c\/td\u003e\n\u003ctd\u003eMonthly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e6\u003c\/td\u003e\n\u003ctd\u003eRepeat Order Rate\u003c\/td\u003e\n\u003ctd\u003eMeasures customer loyalty and product quality\u003c\/td\u003e\n\u003ctd\u003eTarget 60%+, reviewed quarterly to validate product-market fit\u003c\/td\u003e\n\u003ctd\u003eQuarterly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e7\u003c\/td\u003e\n\u003ctd\u003eDays Sales Outstanding (DSO)\u003c\/td\u003e\n\u003ctd\u003eMeasures cash collection speed\u003c\/td\u003e\n\u003ctd\u003eTarget 45 days or less, reviewed weekly to manage liquidity and the defintely tight cash position\u003c\/td\u003e\n\u003ctd\u003eWeekly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/table\u003e\n\u003cdiv class=\"dwnld_btn_div\"\u003e\u003cbutton id=\"dwnld_btn_id\" class=\"dwnld_btn_clss\"\u003eDownload Table in XLSX\u003c\/button\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e \u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhich product segments drive the most profitable growth, not just volume?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eThe most profitable growth comes from prioritizing high-margin specialty jobs, because high-volume Standard Multilayer units, while boosting top-line revenue, can drag down your overall Gross Margin Percentage (GM%) if their contribution isn't high enough; this is a common challenge in fabrication, as detailed in analyses like \u003ca href=\"\/blogs\/profitability\/printed-circuit-board\"\u003eIs The Printed Circuit Board Business Achieving Consistent Profitability?\u003c\/a\u003e\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/pdf\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eVolume Dilution Risk\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eStandard Multilayer units might account for \u003cstrong\u003e70%\u003c\/strong\u003e of your unit volume, but if their Gross Margin Percentage (GM%) is only \u003cstrong\u003e25%\u003c\/strong\u003e, they are defintely diluting the blended rate.\u003c\/li\u003e\n\u003cli\u003eIf specialty boards deliver a \u003cstrong\u003e55%\u003c\/strong\u003e GM, you need to calculate the exact revenue mix required to lift the blended rate above \u003cstrong\u003e35%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eHigh volume doesn't equal high profit; you must track the dollar contribution per segment, not just the order count.\u003c\/li\u003e\n\u003cli\u003eIf onboarding takes \u003cstrong\u003e14+\u003c\/strong\u003e days for complex jobs, churn risk rises, even if the initial margin looks good.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/pdf\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eShifting the Revenue Mix\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTarget hardware startups needing rapid prototyping, as these initial runs often command \u003cstrong\u003e3x\u003c\/strong\u003e the price per square foot.\u003c\/li\u003e\n\u003cli\u003ePush for design wins in aerospace and defense, where qualification costs justify a minimum \u003cstrong\u003e45%\u003c\/strong\u003e GM target.\u003c\/li\u003e\n\u003cli\u003eImplement dynamic pricing tiers based on required lead time; a \u003cstrong\u003e5-day\u003c\/strong\u003e turnaround should carry a \u003cstrong\u003e30%\u003c\/strong\u003e premium over standard \u003cstrong\u003e3-week\u003c\/strong\u003e fulfillment.\u003c\/li\u003e\n\u003cli\u003eAnalyze the cost of poor quality (COPQ) for Standard Multilayer runs; scrap rates above \u003cstrong\u003e4%\u003c\/strong\u003e immediately erase margin gains.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow quickly can we reduce Cost of Goods Sold (COGS) to improve the 88% Gross Margin?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eImproving the \u003cstrong\u003e88% Gross Margin\u003c\/strong\u003e demands aggressive control over your largest inputs, specifically the \u003cstrong\u003eSpecialty RF Laminate\u003c\/strong\u003e cost, currently sitting at $4000 per unit, while ensuring fixed overhead is fully absorbed by production volume. If you can cut material costs by just 10%, that flows directly to the bottom line, which is key to understanding how much the owner makes from a Printed Circuit Board business, as detailed here: \u003ca href=\"\/blogs\/how-much-makes\/printed-circuit-board\"\u003eHow Much Does The Owner Make From A Printed Circuit Board Business?\u003c\/a\u003e. Honestly, defintely focus on supplier tiering first.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eAttack Direct Material Costs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTarget the \u003cstrong\u003e$4000\/unit\u003c\/strong\u003e laminate cost for immediate review.\u003c\/li\u003e\n\u003cli\u003eSeek volume discounts by committing to \u003cstrong\u003e12-month supply agreements\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eQualify secondary suppliers for critical materials to reduce single-source risk.\u003c\/li\u003e\n\u003cli\u003eIf laminate is 40% of COGS, a \u003cstrong\u003e5% material price drop\u003c\/strong\u003e yields a 2% GM lift.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOptimize Overhead Allocation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eMap indirect overhead (factory rent, utilities) to machine run-time hours.\u003c\/li\u003e\n\u003cli\u003eIncrease machine utilization rate above \u003cstrong\u003e85% capacity\u003c\/strong\u003e to spread fixed costs.\u003c\/li\u003e\n\u003cli\u003eReview labor allocation; move non-value-add administrative tasks out of COGS.\u003c\/li\u003e\n\u003cli\u003eHigh utilization means lower COGS per board, protecting that \u003cstrong\u003e88% Gross Margin\u003c\/strong\u003e target.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat is our current production capacity utilization and what is the bottleneck?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eCurrent capacity utilization for the Printed Circuit Board (PCB) fabrication line sits at \u003cstrong\u003e65%\u003c\/strong\u003e, meaning the \u003cstrong\u003e$204 million\u003c\/strong\u003e investment in the Automated Etching Line and Multi-Spindle Drilling Machine is currently under-leveraged. The immediate bottleneck is achieving \u003cstrong\u003e85%\u003c\/strong\u003e utilization to meet the required return on invested capital (ROIC) targets set for Q4 2025.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCapacity Utilization Check\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCurrent throughput is \u003cstrong\u003e150,000 sq. ft.\u003c\/strong\u003e processed per month.\u003c\/li\u003e\n\u003cli\u003eTarget utilization for the new CAPEX is \u003cstrong\u003e85%\u003c\/strong\u003e utilization to justify the spend.\u003c\/li\u003e\n\u003cli\u003eWe need \u003cstrong\u003e35,000 sq. ft.\u003c\/strong\u003e more monthly volume to hit the required ROIC hurdle rate.\u003c\/li\u003e\n\u003cli\u003eIf onboarding new high-mix clients takes 14+ days, churn risk defintely rises.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eIdentifying the Constraint\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eThe primary constraint isn't the new etching or drilling machines; it's the \u003cstrong\u003efinal electrical testing stage\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eThis stage processes only \u003cstrong\u003e180 complex units\/day\u003c\/strong\u003e, regardless of upstream speed.\u003c\/li\u003e\n\u003cli\u003eHave You Considered The Best Strategies To Launch Your Printed Circuit Board Business?\u003c\/li\u003e\n\u003cli\u003eWe must automate final quality assurance (QA) testing by \u003cstrong\u003eOctober 1, 2024\u003c\/strong\u003e, to unlock the new CAPEX value.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eDo we have enough working capital to cover the projected $113 million minimum cash need?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eCovering the \u003cstrong\u003e$113 million\u003c\/strong\u003e minimum cash need hinges defintely on optimizing your cash conversion cycle, specifically keeping Days Sales Outstanding (DSO) low while inventory turns quickly to hit that \u003cstrong\u003e41-month\u003c\/strong\u003e payback target. If you can't manage receivables and stock efficiently, that initial cash burn will extend far beyond projections.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManage Receivables to Fund Operations\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eDSO directly impacts how long the \u003cstrong\u003e$113M\u003c\/strong\u003e sits idle in customer accounts.\u003c\/li\u003e\n\u003cli\u003eAim for Net 30 payment terms with aerospace and defense contractors.\u003c\/li\u003e\n\u003cli\u003eIf DSO creeps above 50 days, the \u003cstrong\u003e41-month\u003c\/strong\u003e payback timeline is threatened.\u003c\/li\u003e\n\u003cli\u003eReview customer payment history every two weeks; chase late payments fast.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eSpeed Up Inventory Turnover\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eHigh inventory turnover reduces obsolescence risk for specialized PCB materials.\u003c\/li\u003e\n\u003cli\u003eUnderstand the true cost of fabrication; check \u003ca href=\"\/blogs\/startup-costs\/printed-circuit-board\"\u003eWhat Is The Estimated Cost To Open And Launch Your Printed Circuit Board Business?\u003c\/a\u003e\n\u003c\/li\u003e\n\u003cli\u003eFaster turns mean less working capital is tied up in raw copper and substrates.\u003c\/li\u003e\n\u003cli\u003eThis efficiency is cruical to funding operations until month 41 arrives.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e \u003cdiv class=\"card_smpl\"\u003e\n\n\u003cdiv class=\"double_border\"\u003e\n\n\u003cdiv class=\"card_smpl_header\"\u003e\n\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\n\u003ch3\u003eKey Takeaways\u003c\/h3\u003e\n\n\u003c\/div\u003e\n\n\u003cul class=\"lst_crct_blog\"\u003e\n\n\u003cli\u003eAchieving the 13-month break-even goal requires aggressive scaling of production while effectively managing the $204 million capital expenditure investment.\u003c\/li\u003e\n\n\u003cli\u003eSustained profitability depends on prioritizing high-ASP product segments, like Flex Rigid Medical, to ensure the Gross Margin Percentage (GM%) remains above the critical 80% target.\u003c\/li\u003e\n\n\u003cli\u003eOperational efficiency must be driven by daily tracking of quality, specifically aiming for a First Pass Yield (FPY) of 95% or higher to control scrap and rework costs.\u003c\/li\u003e\n\n\u003cli\u003eStrict weekly monitoring of cash conversion metrics, especially Days Sales Outstanding (DSO), is vital to safely cover the projected $113 million minimum cash requirement in early 2027.\u003c\/li\u003e\n\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 1\n: \u003cspan style=\"color: #126CFF;\"\u003eAverage Selling Price (ASP)\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eAverage Selling Price (ASP) is simply Total Revenue divided by Total Units Sold. It measures revenue quality, showing you the average price point you achieve per PCB shipped. For CircuitCore Manufacturing, hitting the \u003cstrong\u003e$343+ target in 2026\u003c\/strong\u003e confirms you are successfully prioritizing complex, high-value fabrication jobs over simple, low-margin runs.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShows if sales are focused on high-precision, high-margin boards.\u003c\/li\u003e\n\u003cli\u003eTracks pricing power against rising material costs for fabrication.\u003c\/li\u003e\n\u003cli\u003eHelps steer engineering toward profitable product configurations.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eA single, huge, low-margin contract can temporarily depress the average.\u003c\/li\u003e\n\u003cli\u003eIt hides the actual volume of units being moved.\u003c\/li\u003e\n\u003cli\u003eIt doesn't reflect the cost of goods sold (COGS) for that specific unit.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003ePCB ASP varies dramatically based on complexity; a standard 4-layer board for consumer tech sells for far less than a high-reliability 16-layer board for aerospace. Benchmarks are only useful if you compare your ASP against the specific complexity tier you serve. You need to know what your direct competitors charge for equivalent build specifications, not just a general industry average.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReview ASP \u003cstrong\u003emonthly\u003c\/strong\u003e to catch negative trends immediately.\u003c\/li\u003e\n\u003cli\u003eEnsure sales incentives reward selling complex builds that meet the \u003cstrong\u003e$343+ 2026 target\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eBundle standard services, like rapid prototyping, into premium packages.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTo find your ASP, take all the money you earned from selling boards and divide it by how many boards you shipped. This tells you the average revenue per unit.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nASP = Total Revenue \/ Total Units Sold\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSay CircuitCore Manufacturing generated \u003cstrong\u003e$1,029,000\u003c\/strong\u003e in revenue last month from selling PCBs, and you shipped exactly \u003cstrong\u003e3,000\u003c\/strong\u003e units total. The calculation shows your current ASP.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nASP = $1,029,000 \/ 3,000 Units = $343 per Unit\n\u003c\/div\u003e\n\u003cp\u003eIf you hit $343, you are on track for the 2026 goal, but you need to keep pushing that number up.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e  \n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTrack ASP segmented by customer type (e.g., defense vs. startup).\u003c\/li\u003e\n\u003cli\u003eIf your ASP drops below \u003cstrong\u003e$343\u003c\/strong\u003e, immediately investigate the product mix sold.\u003c\/li\u003e\n\u003cli\u003eEnsure setup fees and non-recurring engineering (NRE) charges are included in the revenue base.\u003c\/li\u003e\n\u003cli\u003eCompare ASP trends against your \u003cstrong\u003eGross Margin Percentage (GM%)\u003c\/strong\u003e to spot margin erosion.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 2\n: \u003cspan style=\"color: #126CFF;\"\u003eGross Margin Percentage (GM%)\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eGross Margin Percentage (GM%) shows how profitable your core production is before overhead. It tells you how much revenue is left after paying for the direct costs of making the product, like materials and direct labor. For a manufacturer like CircuitCore, hitting \u003cstrong\u003e80%+\u003c\/strong\u003e is the goal for sustainable operations.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShows true production efficiency, isolating material and labor costs.\u003c\/li\u003e\n\u003cli\u003eDirectly flags when material price hikes erode profitability.\u003c\/li\u003e\n\u003cli\u003eGuides pricing strategy for new product lines or custom jobs.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIgnores critical fixed costs like plant utilities ($8,000\/month).\u003c\/li\u003e\n\u003cli\u003eCan mask poor inventory management if COGS calculations are lagged.\u003c\/li\u003e\n\u003cli\u003eA high GM% doesn't guarantee overall company profit if volume is too low.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor high-precision fabrication, especially in regulated sectors like aerospace and defense, a target GM% above \u003cstrong\u003e80%\u003c\/strong\u003e is standard because material costs are high and quality control is expensive. If you fall below \u003cstrong\u003e70%\u003c\/strong\u003e, you're likely underpricing your complexity or losing control of component sourcing. This metric is your baseline for manufacturing viability.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eNegotiate volume discounts with primary copper foil and laminate suppliers.\u003c\/li\u003e\n\u003cli\u003eImplement strict scrap reduction protocols to boost First Pass Yield (FPY).\u003c\/li\u003e\n\u003cli\u003eReview pricing quarterly to ensure material cost inflation is passed to the customer.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTo calculate GM%, take total revenue, subtract the Cost of Goods Sold (COGS), and divide that difference by revenue. This isolates the profit earned purely from fabrication activities.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nGM% = (Revenue - COGS) \/ Revenue\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eIf CircuitCore Manufacturing generated \u003cstrong\u003e$1,000,000\u003c\/strong\u003e in revenue from PCB sales last month, and the direct costs (materials, direct labor) totaled \u003cstrong\u003e$180,000\u003c\/strong\u003e, here is the resulting margin.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nGM% = ($1,000,000 - $180,000) \/ $1,000,000 = \u003cstrong\u003e82%\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e82%\u003c\/strong\u003e margin is strong, showing excellent control over production inputs relative to sales price.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e  \n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReview GM% against the \u003cstrong\u003e80%\u003c\/strong\u003e target every month, not just quarterly.\u003c\/li\u003e\n\u003cli\u003eBreak down COGS into material vs. direct labor components for better control.\u003c\/li\u003e\n\u003cli\u003eIf First Pass Yield drops, expect GM% to drop the following month due to rework costs.\u003c\/li\u003e\n\u003cli\u003eTrack the cost variance of key raw materials defintely; this drives your pricing adjustments.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 3\n: \u003cspan style=\"color: #126CFF;\"\u003eFirst Pass Yield (FPY)\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFirst Pass Yield (FPY) shows how many Printed Circuit Boards (PCBs) pass quality control (QC) the very first time they are checked. This metric is crucial for CircuitCore Manufacturing because it directly measures process efficiency and controls scrap costs. Hitting the \u003cstrong\u003e95%+ target\u003c\/strong\u003e daily means you aren't wasting expensive materials or labor on fixing mistakes.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eImmediately flags production issues before they compound into large scrap batches.\u003c\/li\u003e\n\u003cli\u003eLowers Cost of Goods Sold (COGS) by reducing rework labor and material waste.\u003c\/li\u003e\n\u003cli\u003eImproves on-time delivery by preventing bottlenecks caused by quality holds.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCan mask systemic quality problems if the initial QC standard is set too low.\u003c\/li\u003e\n\u003cli\u003eDoesn't account for the actual dollar cost of the rework, only the frequency.\u003c\/li\u003e\n\u003cli\u003eFocusing only on the first pass might encourage rushing inspection steps to meet the number.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor high-precision fabrication like CircuitCore provides, an FPY below \u003cstrong\u003e90%\u003c\/strong\u003e signals serious trouble with process stability or material sourcing. Top-tier electronics manufacturers often aim for \u003cstrong\u003e98%\u003c\/strong\u003e or higher, especially when serving defense clients. Hitting \u003cstrong\u003e95%+\u003c\/strong\u003e is the minimum requirement to support that aggressive \u003cstrong\u003e80%+ Gross Margin Percentage\u003c\/strong\u003e we are targeting.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eImplement Statistical Process Control (SPC) on critical steps like etching and plating.\u003c\/li\u003e\n\u003cli\u003eMandate daily review meetings focused solely on the previous 24 hours' FPY results.\u003c\/li\u003e\n\u003cli\u003eInvest in automated optical inspection (AOI) tools to catch defects earlier in the line.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou calculate FPY by dividing the number of units that pass inspection immediately by the total number of units that entered the inspection process. This tells you the raw efficiency of your manufacturing steps before any human intervention is needed.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003eFPY = (Units Passing QC First Time \/ Total Units Started)\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eIf CircuitCore starts \u003cstrong\u003e500\u003c\/strong\u003e new PCB lots on Tuesday, but only \u003cstrong\u003e465\u003c\/strong\u003e pass inspection without needing any touch-up or repair, the calculation is straightforward. Here’s the quick math…\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003eFPY = (465 \/ 500) = 0.93 or \u003cstrong\u003e93%\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e93%\u003c\/strong\u003e result is below the \u003cstrong\u003e95%\u003c\/strong\u003e goal, meaning \u003cstrong\u003e35\u003c\/strong\u003e units required rework, which directly erodes profitability. You need to know this number every morning.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e  \n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTie operator bonuses directly to daily FPY performance metrics.\u003c\/li\u003e\n\u003cli\u003eSegment FPY by specific manufacturing step (e.g., drilling vs. solder mask).\u003c\/li\u003e\n\u003cli\u003eUse the FPY trend line to justify capital expenditure requests for new equipment.\u003c\/li\u003e\n\u003cli\u003eIf FPY drops below \u003cstrong\u003e94%\u003c\/strong\u003e for three consecutive days, halt new production starts until root cause analysis is complete; defintely don't push bad product downstream.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 4\n: \u003cspan style=\"color: #126CFF;\"\u003eCapacity Utilization Rate\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eCapacity Utilization Rate shows how much of your maximum production capability you are actually using. It’s the key metric for understanding if your expensive equipment is working hard enough. Hitting targets helps you decide when to buy more machines or hire more people.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShows true asset efficiency, not just activity levels.\u003c\/li\u003e\n\u003cli\u003eDirectly informs capital spending decisions (CAPEX).\u003c\/li\u003e\n\u003cli\u003eHighlights bottlenecks preventing higher output.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eA high rate might mask poor quality (low First Pass Yield).\u003c\/li\u003e\n\u003cli\u003eDoesn't account for product mix complexity or setup time.\u003c\/li\u003e\n\u003cli\u003eCan pressure staff into unsafe or unsustainable speeds.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor precision manufacturing like PCB fabrication, a utilization rate below \u003cstrong\u003e60%\u003c\/strong\u003e suggests idle assets or over-investment in machinery. The target of \u003cstrong\u003e70%+\u003c\/strong\u003e is standard for justifying new equipment purchases. Running consistently above \u003cstrong\u003e90%\u003c\/strong\u003e often means you need to plan for expansion soon, even if your fixed costs like Plant Utilities ($8,000\/month) seem covered.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eImplement scheduling software to reduce machine changeover time.\u003c\/li\u003e\n\u003cli\u003eCross-train staff so you can shift labor where bottlenecks appear.\u003c\/li\u003e\n\u003cli\u003eFocus sales on products that use underutilized machinery lines.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou calculate this by dividing the actual output by the maximum possible output given your current assets and operating hours. This tells you the percentage of time your factory floor is actually making sellable goods.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nCapacity Utilization Rate = Actual Units Produced \/ Maximum Potential Units\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSay your current PCB fabrication line has the capacity to produce \u003cstrong\u003e10,000\u003c\/strong\u003e boards in a standard month, but due to maintenance and slow orders, you only completed \u003cstrong\u003e6,500\u003c\/strong\u003e units. Here’s the quick math:\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\n6,500 Units \/ 10,000 Units = \u003cstrong\u003e65%\u003c\/strong\u003e Utilization Rate\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e65%\u003c\/strong\u003e utilization means 35% of your potential output capacity sat idle last month, which is below the \u003cstrong\u003e70%\u003c\/strong\u003e target.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e  \n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReview this metric \u003cstrong\u003eweekly\u003c\/strong\u003e, not monthly, to catch dips fast.\u003c\/li\u003e\n\u003cli\u003eTie utilization directly to your hiring plan for production staff.\u003c\/li\u003e\n\u003cli\u003eIf utilization is high but Gross Margin is low, investigate pricing (ASP).\u003c\/li\u003e\n\u003cli\u003eRemember that \u003cstrong\u003e100%\u003c\/strong\u003e utilization is usually a sign of trouble, not success; aim for sustainable efficiency.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 5\n: \u003cspan style=\"color: #126CFF;\"\u003eOverhead Allocation Rate\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThe Overhead Allocation Rate shows how much indirect cost you assign to every hour of labor spent making your printed circuit boards (PCBs). You review this \u003cstrong\u003emonthly\u003c\/strong\u003e to see if fixed costs, like your \u003cstrong\u003e$8,000\/month\u003c\/strong\u003e in Plant Utilities, are being spread fairly across production. Honestly, if this number is too low, you are hiding costs in inventory.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eEnsures accurate product costing for pricing decisions.\u003c\/li\u003e\n\u003cli\u003eHighlights inefficiency when fixed costs aren't absorbed well.\u003c\/li\u003e\n\u003cli\u003eHelps justify capital expenditures (CAPEX) based on utilization.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCan be misleading if direct labor hours drop sharply.\u003c\/li\u003e\n\u003cli\u003eDoesn't show which specific overhead cost is driving the rate.\u003c\/li\u003e\n\u003cli\u003eMay over-allocate overhead during slow production periods.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor high-precision manufacturing like PCBs, the rate varies wildly based on automation. Highly automated shops might have a low rate because direct labor hours are minimal. If your rate is significantly higher than peers, it suggests you have too much fixed overhead relative to the work your direct labor team is performing.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIncrease \u003cstrong\u003eCapacity Utilization Rate\u003c\/strong\u003e to spread fixed costs wider.\u003c\/li\u003e\n\u003cli\u003eActively seek ways to cut fixed overhead, like reducing \u003cstrong\u003e$8,000\/month\u003c\/strong\u003e utilities.\u003c\/li\u003e\n\u003cli\u003eShift production mix toward jobs requiring more direct labor hours.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/f%0Aml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou need two numbers: the total overhead you plan to assign (Allocated Overhead) and the total hours your production team worked (Direct Labor Hours). This calculation is done monthly.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003eOverhead Allocation Rate = Total Allocated Overhead \/ Total Direct Labor Hours\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSay your total overhead budget for the month is \u003cstrong\u003e$100,000\u003c\/strong\u003e, covering everything from rent to those \u003cstrong\u003e$8,000\u003c\/strong\u003e utilities, and your team logged \u003cstrong\u003e5,000\u003c\/strong\u003e direct labor hours making PCBs. Here’s the quick math to find the rate you apply to each job.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e$100,000 (Overhead) \/ 5,000 (Hours) = $20.00 per Direct Labor Hour\u003c\/div\u003e\n\u003cp\u003eThis means you are adding \u003cstrong\u003e$20.00\u003c\/strong\u003e of indirect cost recovery to every hour of direct labor used on a job.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e  \n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReview this rate \u003cstrong\u003emonthly\u003c\/strong\u003e, as specified in your targets.\u003c\/li\u003e\n\u003cli\u003eTie changes in this rate directly to your \u003cstrong\u003eGross Margin Percentage (GM%)\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eIf utilization is low, the rate inflates costs on good jobs.\u003c\/li\u003e\n\u003cli\u003eUse a predetermined rate unless overhead shifts dramatically week-to-week.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 6\n: \u003cspan style=\"color: #126CFF;\"\u003eRepeat Order Rate\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThe Repeat Order Rate shows how many customers come back for more than one purchase. This metric directly measures customer loyalty and, critically for PCB manufacturing, sustained product quality. Hitting the \u003cstrong\u003e60%+\u003c\/strong\u003e target quarterly confirms you’ve nailed product-market fit for your high-precision fabrication service.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eConfirms consistent product quality, essential when dealing with high-stakes components like aerospace boards.\u003c\/li\u003e\n\u003cli\u003eLowers Customer Acquisition Cost (CAC) because retaining a client costs much less than finding a new one.\u003c\/li\u003e\n\u003cli\u003eIndicates strong product-market fit, meaning your specialized US fabrication service solves a real, recurring pain point.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIt’s a lagging indicator; you won't see quality issues reflected until the next quarterly review.\u003c\/li\u003e\n\u003cli\u003eA single large initial contract placing two orders can artificially inflate the rate temporarily.\u003c\/li\u003e\n\u003cli\u003eIt doesn't measure the value of the repeat order; a small $1,000 reorder counts the same as a $50,000 reorder.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor specialized B2B manufacturing like high-precision PCBs, benchmarks vary based on contract complexity and cycle time. While consumer tech might aim for 70%+, industrial B2B often sees lower initial rates due to longer qualification periods. A rate above \u003cstrong\u003e40%\u003c\/strong\u003e is generally solid for complex, infrequent purchases, but CircuitCore should push toward \u003cstrong\u003e60%+\u003c\/strong\u003e to prove its value proposition against overseas suppliers.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eImplement a proactive quality assurance check 30 days post-delivery to catch early issues before the next order.\u003c\/li\u003e\n\u003cli\u003eCreate tiered pricing incentives for clients committing to annual volume tiers, encouraging repeat business.\u003c\/li\u003e\n\u003cli\u003eShorten the feedback loop with engineering teams so client suggestions on the first run are incorporated quickly into the second.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou need the total count of unique customers who have purchased twice or more, divided by the total unique customer count over the period. This calculation is best done quarterly, aligning with your product-market fit validation schedule.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nRepeat Order Rate = (Number of Customers with 2+ Orders) \/ (Total Customers)\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSay you analyzed your Q3 performance. You served 150 unique customers in that period. Of those 150, you see that 90 of them have placed at least one subsequent order after their first one.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nRepeat Order Rate = 90 \/ 150 = 0.60 or 60%\n\u003c\/div\u003e\n\u003cp\u003eThis result hits your target exactly, meaning your service delivery is resonating well with the market base you've acquired so far.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e  \n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eSegment this rate by customer vertical (e.g., medical vs. automotive) to see where quality is strongest.\u003c\/li\u003e\n\u003cli\u003eTie quarterly reviews directly to the First Pass Yield (KPI 3) results for root cause analysis.\u003c\/li\u003e\n\u003cli\u003eWatch for churn spikes if Days Sales Outstanding (KPI 7) creeps past \u003cstrong\u003e45 days\u003c\/strong\u003e, as slow payment often precedes lost business.\u003c\/li\u003e\n\u003cli\u003eUse the target review cycle of \u003cstrong\u003equarterly\u003c\/strong\u003e to adjust R\u0026amp;D spend priorities, defintely not monthly.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 7\n: \u003cspan style=\"color: #126CFF;\"\u003eDays Sales Outstanding (DSO)\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eDays Sales Outstanding (DSO) tells you the average number of days it takes for CircuitCore Manufacturing to collect payment after making a sale on credit. This metric is vital because slow collections tie up cash needed for materials and overhead, like the \u003cstrong\u003e$8,000\/month\u003c\/strong\u003e in plant utilities mentioned in your overhead tracking. You need to keep this number low to manage liquidity, especially since your cash position is defintely tight.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShows how fast you convert sales into actual cash in the bank.\u003c\/li\u003e\n\u003cli\u003eFlags customers who are slow payers before they become serious collection problems.\u003c\/li\u003e\n\u003cli\u003eDirectly improves working capital, which is key when funding high-cost PCB inputs.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eA single large contract with \u003cstrong\u003eNet 60\u003c\/strong\u003e terms can artificially inflate the average DSO.\u003c\/li\u003e\n\u003cli\u003eIt ignores the actual payment terms you agreed to with clients upfront.\u003c\/li\u003e\n\u003cli\u003eOver-focusing on lowering DSO might cause you to lose major defense or aerospace clients needing longer terms.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor high-precision B2B component suppliers like CircuitCore, standard payment terms often land around \u003cstrong\u003eNet 30\u003c\/strong\u003e or \u003cstrong\u003eNet 45\u003c\/strong\u003e days. Hitting your target of \u003cstrong\u003e45 days or less\u003c\/strong\u003e is essential, especially since your \u003cstrong\u003eGross Margin Percentage (GM%)\u003c\/strong\u003e target is high at \u003cstrong\u003e80%+\u003c\/strong\u003e, meaning you need that cash back fast to fund high-cost inputs and maintain production flow.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eInvoice immediately when units ship; don't wait for month-end reconciliation.\u003c\/li\u003e\n\u003cli\u003eRun credit checks on all new hardware startups before offering \u003cstrong\u003eNet 30\u003c\/strong\u003e terms.\u003c\/li\u003e\n\u003cli\u003eImplement a small incentive, like a \u003cstrong\u003e1% discount\u003c\/strong\u003e if paid within 10 days.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFirst, you need your current Accounts Receivable (AR) balance and your total credit sales for the period, usually 30 days. If CircuitCore has \u003cstrong\u003e$450,000\u003c\/strong\u003e in outstanding receivables and recorded \u003cstrong\u003e$900,000\u003c\/strong\u003e in credit sales last month, the math shows how quickly you're collecting cash. This calculation is done using the following structure.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\n(Accounts Receivable \/ Total Credit Sales)  Days\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eUsing the hypothetical figures above for a 30-day period, we plug the numbers directly into the formula to see the result. This gives you the average time, in days, that money sits waiting to be collected.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\n($450,000 \/ $900,000)  30 Days = \u003cstrong\u003e15 Days\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis result means your average collection time is only \u003cstrong\u003e15 days\u003c\/strong\u003e, which is excellent and well under your \u003cstrong\u003e45\u003c\/strong\u003e\u003c\/p\u003e\n\u003c\/div\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49304163254515,"sku":"printed-circuit-board-kpi-metrics","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/printed-circuit-board-kpi-metrics.webp?v=1782689990","url":"https:\/\/financialmodelslab.com\/products\/printed-circuit-board-kpi-metrics","provider":"Financial Models Lab","version":"1.0","type":"link"}