Finance

The Metrics That Actually Predict Oregon Cannabis Profitability

Revenue is the least informative number on your dashboard. These are the measures that tell you where margin is going before the financial statements confirm it.

Production metrics

Cost per gram produced, yield per square foot, yield per light or plant, harvest cycle time and waste rate. Against Oregon's wholesale pricing, cost per gram is the number that determines whether a sale is worth making at all.

Retail metrics

Average basket, items per transaction, gross margin by category, sell-through velocity by SKU, and revenue per labor hour. Tracked weekly, these expose a merchandising problem long before the monthly close does.

Financial metrics

Gross margin, contribution margin after disallowed retail costs, labor as a percentage of revenue, cash conversion cycle, and effective tax rate including the 280E effect and the Oregon subtraction. The last one is the honest measure of what the business keeps.

Questions

Questions on this topic

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Consultation

Talk with a Cannabis CPA Oregon operators actually use

Bring your OLCC license types, your current books and any open filing deadlines. We will tell you what has to be handled first, and in what order.