To measure **speed of delivery** within the **CORE** framework, we can look at how quickly expenses translate into revenue. A useful financial formula to express this concept is the **Revenue Velocity Ratio**—which in this case can reflect the relationship between revenue and the time-sensitive operational costs (COGS + OPEX). ## Formula One way to measure speed of delivery is by using the ratio of **Revenue to COGS + OPEX**, but in relation to a specific time period (e.g., monthly or quarterly). This can be represented as: $ \text{Revenue Velocity Ratio} = \frac{\text{Revenue (in a period)}}{\text{COGS} + \text{OPEX (in the same period)}} $ **Interpretation** • **Higher Ratio**: A higher Revenue Velocity Ratio indicates that the company is generating more revenue per dollar of production and operational cost, suggesting efficient and rapid delivery. • **Lower Ratio**: A lower ratio may suggest delays or inefficiencies in delivery, as costs are incurred without proportionally increasing revenue. ## Example If a company has: • Revenue of $500,000 in a quarter, • COGS of $200,000, and • OPEX of $150,000, then: $ \text{Revenue Velocity Ratio} = \frac{500,000}{200,000 + 150,000} = \frac{500,000}{350,000} = 1.43 $ This means that for every dollar spent on COGS and OPEX, the company generates $1.43 in revenue within the given time period, reflecting its speed and efficiency in converting operational spending into revenue. By regularly tracking this ratio, you can observe trends in the speed of delivery over time and adjust resources or processes accordingly to improve performance.