If you want to work in a good company as a Data Analyst, then you must understand business numbers.

These 5 numbers are used in almost every company β€” in sales, marketing, reporting, and decision-making.

1. Revenue –

This is the total money the company earns.
If 1,000 people buy a β‚Ή99 product β†’ Revenue = β‚Ή99,000

2. Profit –

This is what’s left after removing expenses.
Profit = Revenue – (ads + salaries + rent + tools)

3. CAC (Customer Acquisition Cost) –

How much money the company spends to get 1 customer.
If ad cost is β‚Ή10,000 and you got 100 customers β†’ CAC = β‚Ή100

4. LTV (Lifetime Value) –

How much total money 1 customer gives in a lifetime.
If one customer buys 3 products worth β‚Ή999 β†’ LTV = β‚Ή2,997

5. Conversion Rate –

How many people buy out of total visitors.
1,000 people visit your website, 50 buy β†’ Conversion Rate = 5%

Why These Numbers Are Important:

  • These 5 numbers help companies take better decisions.
  • Big companies like TCS, Infosys, Flipkart, Amazon use these daily.
  • You must know how to calculate and understand these to become a smart analyst.

Note: These business numbers are basic data points. Big companies use thousands
of data points to make more profit, grow fast, and spend less.

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