Measures the proportion of revenue spent on warranty claims and repairs.

What it Measures ?

How much we spend on warranties.

Relevant StakeHolders 

Finance, Quality Control

In-depth Use Case / Real-world Example

Warranty Cost as % of Revenue calculates the cost of handling warranty claims and repairs as a percentage of service revenue. For example, if a manufacturer spends ₹1 lakh on warranty repairs from ₹10 lakhs in service revenue, the warranty cost as a percentage is 10%. This KPI helps manufacturers identify if warranty costs are growing disproportionately to revenue. A higher percentage may indicate quality issues or inefficient repair processes, which need to be addressed to maintain profitability.