Finance Metrics

The Subscribers metric counts the number of paid or non-paid users who have periodic access to a product or service. Most often, this metric refers to a subscription-based business model, for example, newspapers, magazines, phone, internet service,…

Won Opportunities is the count of sales opportunities that are “Closed Won”. It is a measure of success of the Sales and Marketing teams. "Closed Won" is the stage at which a quote or proposal has been signed or electronically accepted and…

Advertising Costs is a broad expense category, which typically includes online, broadcast, print, outdoor, and direct mail efforts. Advertising can be used at various stages of the customer journey, from brand awareness and brand shaping, to highly…

Net Profit is the value that remains after all operating expenses are subtracted from a company’s revenue. Net Profit is one of the best ways to determine a business' profitability and is often referred to as the bottom line. For Net Income…

Gross Profit is the amount left over from total revenues after Cost of Goods Sold (COGS) has been deducted. COGS will typically include the cost of making and selling the product or the cost of services provided by the company.

A company's Gross Burn is the total cash spent on operations. These costs typically include all salaries, rent, and other overhead as well as interest and taxes. This metric is often confused with Net Burn, which is a measure of negative…

Revenue is the income generated through a business' primary operations, such as the sale of products or services, or proceeds from rent or interest, less any discounts or returns. Unlike related metrics, such as Net Revenue, Gross Margin, or…

Net Burn is the amount a company is losing per month as they burn through their cash reserves. It occurs when a company’s operating costs are higher than their revenue. A company that is profitable and generating cash has a "negative Net Burn…

Payroll to Revenue Ratio is a productivity metric that measures how effective a business is at utilizing its labour costs to produce revenue. As with any ratio, it's always important to understand both the numerator and the denominator and how…

Full-Time Employees generally work more than 4 days or 30 hours a week and are permanently employed, as opposed to being temporary or seasonal. In many countries, a Full-Time Employee is also entitled to health-care benefits and vacation pay among…

Gross Monthly Recurring Revenue Churn Rate (Gross MRR Churn Rate) is the percentage of recurring revenue lost due to both cancellation and downgrades. Note that it is common to express this metric as a monthly rate, though it can also be expressed…

Average Revenue Per User (ARPU) is a company’s generated revenue that is averaged across all users and reported as a monthly or yearly value. ARPU is a top-level metric, that can easily be normalized and is often cited as a comparative measure…

An often overlooked metric by early stage entrepreneurs and investors is the SaaS Quick Ratio, used to measure the growth efficiency of a company. Another way to think of it is as a health measure of company growth.

Inventory Turnover measures how many times in a given time-period your organization is able to sell its entire inventory. Inventory Turnover is an important efficiency metric and helpful in analyzing pricing, product demand, and of-course inventory…

Out of Cash Date gives you a rough estimate of when you will be out of cash. This metric is most often expressed as the number of months before Cash Out. This is a useful metric for CEOs and CFOs who are managing companies that are not profitable…