24 Essential Metrics Every Merchant-Export House Should Track

Indian merchant-export businesses sit at the crossroads of global demand swings, rupee volatility and ever-shifting compliance rules. For decades the recipe for survival was simple: nurture buyer relationships, haggle with suppliers and rely on instinct. Today instinct isn’t enough. Container shortages can burn margin overnight, a delayed e-BRC can freeze GST refunds, and a four-point move in USD/INR can turn a modest profit into a loss.

The antidote is measurement—specific, actionable numbers that alert you before the cracks widen. Think of these 24 metrics as an altimeter, fuel gauge and weather radar rolled into one cockpit dashboard. They are grouped into five themes that mirror how cash, cargo and compliance flow through a trading house. For each theme you’ll see a quick “Why this theme matters” note, and for every individual metric a short “Note” that tells you how to interpret or act on the figure once you’ve calculated it.

FOB = Free on Board. When numbers are in rupees, convert at the RBI reference rate to compare across periods.

 1. Financial Pulse

Why this theme matters: Money is the oxygen of trade. These metrics reveal whether each shipment and the business overall are generating enough oxygen—and how fast you burn it.

Total Export Turnover
• Numbers Needed: FOB values on all shipping bills in the period.
• Formula: Σ (FOB).
• Example: Ten bills at ₹18 lakh–₹24 lakh ⇒ ₹215 lakh.
• Insight & Benchmark: Sets scale; benchmark YoY growth to India’s 1–3 % export pace.
• Note: If turnover grows but margins slip, you may be “buying” revenue through price cuts.
Average Order Value (AOV)
• Numbers Needed: Turnover; invoice count.
• Formula: Turnover ÷ invoices.
• Example: ₹215 lakh ÷ 14 ⇒ ₹15.4 lakh.
• Insight & Benchmark: Larger AOV lowers paperwork per rupee earned; SME norm ~₹6.5–12 lakh.
• Note: Track AOV by customer segment—rising values in one region may offset shrinking tickets elsewhere.
Contribution Margin per Shipment
• Numbers Needed: Invoice; product cost; freight; insurance.
• Formula: (Invoice − product − freight − insurance) ÷ Invoice.
• Example: (₹12 − ₹9 − ₹1 − ₹0.2) ÷ 12 ⇒ 15 %.
• Insight & Benchmark: Highlights routes or SKUs draining profit; renegotiate if <10 %.
• Note: Always recalc after bunker‑fuel or container‑rate spikes—margin can swing in a single week.
Gross Profit Margin
• Numbers Needed: Revenue; COGS.
• Formula: (Rev − COGS) ÷ Rev.
• Example: (₹8 cr − ₹6.2 cr) ÷ 8 ⇒ 22.5 %.
• Insight & Benchmark: Gauges supplier bargaining power; global band 18–25 %.
• Note: If GM drops while contribution margin stays stable, overhead creep—e.g., QC staff—may be the culprit.
EBITDA Margin
• Numbers Needed: EBITDA; revenue.
• Formula: EBITDA ÷ revenue.
• Example: ₹72 lakh ÷ ₹8 cr ⇒ 9 %.
• Insight & Benchmark: Core operating health; Indian traders target 8–12 %.
• Note: Use quarterly EBITDA trend to negotiate better bank interest spreads.
Net Operating Cash‑Flow Margin
• Numbers Needed: NCFO; revenue.
• Formula: NCFO ÷ revenue.
• Example: ₹60 lakh ÷ ₹8 cr ⇒ 7.5 %.
• Insight & Benchmark: Confirms profits are collecting as cash; >5 % is healthy.
• Note: Sudden dips without profit erosion often point to delayed duty‑drawback refunds.
Working‑Capital Turnover
• Numbers Needed: Revenue; inventory; receivables; payables.
• Formula: Rev ÷ (Inv + Rec − Pay).
• Example: 8 ÷ 1.6 ⇒ 5 ×.
• Insight & Benchmark: >4×=fund‑efficient; <2×=cash trapped.
• Note: Pair with credit‑utilisation ratio to judge if you’re squeezing both cash and bank lines.
Credit‑Utilisation Ratio
• Numbers Needed: Drawn credit; limit.
• Formula: (Drawn ÷ Limit) × 100.
• Example: 2 ÷ 3 × 100 ⇒ 67 %.
• Insight & Benchmark: >90 %=tight liquidity; <40 %=idle headroom.
• Note: Persistent >85 % utilisation raises banker eyebrows—expect tougher renewal terms.

 2. Operational Efficiency

Why this theme matters: Speed and accuracy keep working‑capital cycles short and buyers loyal. These numbers expose where delays or defects siphon profit.

Order‑to‑Ship Cycle Time
• Numbers Needed: PO date; LEO date.
• Formula: LEO − PO (days).
• Example: 18 May − 2 May ⇒ 16 days.
• Insight & Benchmark: Sub‑20 days delights buyers; cash tied up until vessel sails.
• Note: Track by supplier cluster—sometimes one factory adds 5‑day lag alone.
On‑Time‑In‑Full (OTIF)
• Numbers Needed: Compliant shipments; total shipments.
• Formula: (Compliant ÷ total) × 100.
• Example: 40 ÷ 45 × 100 ⇒ 89 %.
• Insight & Benchmark: ≥90 % doubles reorder odds.
• Note: Split late vs. short‑shipped reasons; solutions differ (logistics vs. production planning).
Logistics Cost Share
• Numbers Needed: Logistics spend; revenue.
• Formula: (Logistics ÷ Rev) × 100.
• Example: 0.85 ÷ 8 × 100 ⇒ 10.6 %.
• Insight & Benchmark: India’s goal: 9 %; >12 %=space to slim.
• Note: Index freight in USD/tonne to spot hidden surcharges masked by rupee moves.
Inventory Days of Supply (DSI)
• Numbers Needed: Avg inventory; COGS.
• Formula: (Inv ÷ COGS) × 365.
• Example: 1 ÷ 6.2 × 365 ⇒ 59 days.
• Insight & Benchmark: FMCG aim 45–60 days.
• Note: Rising DSI + rising receivable days = perfect storm for cash crunch.
Shipment Error / Rejection Rate
• Numbers Needed: Problem shipments; total shipments.
• Formula: (Problems ÷ total) × 100.
• Example: 3 ÷ 220 × 100 ⇒ 1.36 %.
• Insight & Benchmark: Keep <1 %(food); <0.5 %(industrial).
• Note: Track claim value, not just count—one rejected machinery crate can equal 20 spice cartons.

 3. Cash‑Flow Health

Why this theme matters: Profits mean little if cash arrives months later. These metrics reveal where money stalls en route to your bank.

Receivables Ageing Profile
• Numbers Needed: Invoice buckets.
• Example: >60 days = ₹12 lakh of ₹77 lakh ⇒ 15 %.
• Insight & Benchmark: >20 % >60 days foretells stress.
• Note: Run by buyer—big names often pay slower but at lower default risk.
Average Receivable per Shipment
• Numbers Needed: Receivables; open shipments.
• Formula: Rec ÷ open.
• Example: 77 ÷ 28 ⇒ ₹2.75 lakh.
• Insight & Benchmark: Compare with AOV; large gap = lenient credit.
• Note: Use when annual shipment count fluctuates wildly—avoids misleading DSO averages.
Cash Conversion Efficiency
• Numbers Needed: NCFO; EBITDA.
• Formula: NCFO ÷ EBITDA.
• Example: 60 ÷ 72 ⇒ 0.83.
• Insight & Benchmark: <0.8 = profits stuck; >1 = cash ahead.
• Note: Sudden fall often traces to stock build‑up for seasonal spikes.
Forex Exposure Hedging Ratio
• Numbers Needed: Hedged FX; open FX.
• Formula: (Hedged ÷ open) × 100.
• Example: 0.9 ÷ 1 × 100 ⇒ 90 %.
• Insight & Benchmark: 80–90 % coverage per Draft EXIM 2025.
• Note: Lock cover within 24 h of order confirmation to avoid booking at weak rupee peaks.

4. Market & Customer Insight

Why this theme matters: Repeat customers and diverse markets cushion demand shocks. These metrics tell you if your portfolio is resilient.

Quote‑to‑Order Conversion Rate
• Numbers Needed: Orders; quotes.
• Formula: (Orders ÷ quotes) × 100.
• Example: 14 ÷ 50 × 100 ⇒ 28 %.
• Insight & Benchmark: Digital quotes push >30 %.
• Note: Track lost‑quote reasons (price, lead‑time, payment terms) to guide improvements.
Repeat‑Order Ratio
• Numbers Needed: Repeat; total orders.
• Formula: (Repeat ÷ total) × 100.
• Example: 78 ÷ 120 × 100 ⇒ 65 %.
• Insight & Benchmark: Councils cite 60 % as healthy.
• Note: Combine with OTIF—service lapses show up first in declining repeat ratio.
Country Concentration Index
• Numbers Needed: Revenue share by country.
• Formula: Σ (share²).
• Example: 0.4² + 0.3² + 0.15² + 0.15² = 0.29.
• Insight & Benchmark: >0.15 = geopolitical over‑exposure.
• Note: A sudden jump may be acceptable if linked to hedged long‑term contract.
HS‑Code Diversity Ratio
• Numbers Needed: Top‑3 HS revenue; total revenue.
• Formula: Top‑3 ÷ total.
• Example: 3.5 ÷ 8 ⇒ 0.44.
• Insight & Benchmark: Mature mix <0.60.
• Note: Use 6‑digit HS granularity for meaningful diversity—2‑digit masks nuance.

5. Compliance & Risk Shield

Why this theme matters: Miss one filing and shipments can stall at port. These metrics alert you to paperwork bottlenecks before fines or delays bite.

Duty‑Drawback Realisation Lag
• Numbers Needed: LEO; refund date.
• Formula: Refund − LEO.
• Example: 17 Mar − 3 Mar ⇒ 14 days.
• Insight & Benchmark: Clean docs pay 7–15 days.
• Note: Spike in lag often follows code change in drawback rate table—double‑check HS mapping.
BRC / e‑BRC Filing Lag
• Numbers Needed: Remit date; upload date.
• Formula: Upload − remit.
• Example: 25 Apr − 6 Apr ⇒ 19 days.
• Insight & Benchmark: Keep <30 days; customs uneasy >90.
• Note: Track bank‑wise; some AD branches chronically lag.
Regulatory‑Filing Compliance Score
• Numbers Needed: On‑time; total filings.
• Formula: (On‑time ÷ total) × 100.
• Example: 47 ÷ 48 × 100 ⇒ 97.9 %.
• Insight & Benchmark: Aim 100 % for status‑holder perks.
• Note: Include DGFT‑mandated annual return (ANF‑8)—many exporters forget this and lose risk‑based facilitation.

Numbers rarely lie, but only when you look at the right ones. The twenty‑four metrics above are more than spreadsheet fodder—they are early‑warning beacons in a trade landscape where a container shortage, a currency jolt or a missed filing can erase months of hard work. Adopt them, review them regularly and share them with every planner, salesperson and logistics partner in your chain. When every stakeholder speaks the same metric language, instinct turns into insight—and insight turns into sustainable, compounding growth.