Fundamental Metrics

The fundamental metrics and KPIs for every business. Learn about what metrics and KPIs are best for you, vote, and contribute your own.

Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. This includes the fully loaded costs associated with sales and marketing to attract a potential customer and to convince them to purchase, divided across all new customers.

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Financial Debt

Financial Debt is a company's non-operational debt. With low interest rates and a supply of lenders, debt in non-financial corporations has steadily risen in the past 15 years, benefiting some companies, but putting others at risk.

Full-Time Equivalents

Full-Time Equivalents (FTE) is a calculated metric that adds all of the true full-time employees to the fractional values for all part-time employees, contractors, students and interns.

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Lifetime Value to Cost of Acquisition Ratio

The Lifetime Value to Cost of Acquisition (LTV/CAC) Ratio tells you if the theoretical lifetime revenue you get from a customer is higher or lower than the sales and marketing costs needed to acquire that customer.

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MRR Growth Rate

Monthly Recurring Revenue (MRR) Growth Rate is the velocity at which MRR is being added to the business, expressed as a percentage. MRR Growth Rate is often cited as a monthly rate, but it's also possible to express it using an annual timeframe; for example, "we are targeting 10% MRR Growth for April", or "our MRR Growth Rate was 100% last year".

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Net Income

Net Income is an accounting term that refers to the total revenue minus the total expenses for any given period. Net Income is one of the best ways to determine a business' profitability and is often referred to as the bottom line. For Net Income, expenses to be deducted include Cost of Goods Sold (COGS), all operating expenses, and tax and interest costs.

Net Profit

Net profit is the value that remains after all expenses are subtracted from the company’s total income. It is one of the best ways to determine a business' profitability and is often referred to as the bottom line.

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Revenue

Revenue is defined as the income generated through a business’ primary operations. It is often referred to as “top line” and is shown at the top of an income statement.

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Revenue per Employee

Revenue per Employee is a measure of the total Revenue for the last twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Also known as Revenue to Employee Ratio, this ratio is among the most universally applicable and is often used to compare companies within the same industry.

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