How to use?
Measure the overall revenue and growth of your business.

Taxation: Knowing your total income is essential for filling out tax returns and understanding how much tax you owe or what kind of tax breaks you might qualify for.

Budgeting: When you know your total income, it's easier to plan a budget and make financial decisions for yourself or your family. Financial

Planning: Total income provides a basis for investment decisions, retirement planning, and understanding what kind of lifestyle you can afford.

Business Analysis: For companies, knowing the total income is crucial for making informed decisions about growth, investments, and operational changes.

The percentage increase (or decrease) in a company's revenue over a specific period of time. It's an essential indicator of the company's health, the effectiveness of its sales and marketing strategies, and its future prospects. Measures how fast revenue is increasing.

How to use?
We like ARPU because it provides a quick overview of performance. They can use it to understand how much money the business is making, how it compares to the marketing expenses per customer (CAC) and what future revenue projections might look like.

What it tells you?
Customer spending habits and revenue potential

What to avoid?
Prioritizing short-term revenue over user experience

The total number of sales or deals you've made.

Concept
Predictable monthly revenue from subscription products

What it tells you?
Revenue stability and growth potential

What to avoid?
Overlooking churn or neglecting non-recurring revenue

How to calculate it?
Sum of monthly subscription fees from all customers

Concept
Revenue lost due to cancellations or downgrades

What it tells you?
Revenue leakage and areas to improve customer retention

What to avoid?
Chasing new revenue while ignoring existing customers

How to calculate it?
Revenue leakage and areas to improve customer retention

Concept
Revenue lost due to cancellations or downgrades

What to avoid?
Chasing new revenue while ignoring existing customers

Concept
Average revenue from each customer contract

What to avoid?
Focusing on contract size over long-term relationships

How to use?

Liquidity: A positive net asset value indicates that the organization has enough assets to cover its liabilities.

Financial Stability: A consistent increase in net assets over time usually signals good financial health, while declining net assets could be a warning sign.

How to use?
Understand your immediate financial position.

How to use?
Manage cash flow and plan for upcoming expenses.

How to use?
Manage supplier relationships and optimize payment timing.

How to use?

A ratio of 1 is better than a ratio of less than 1, but it isn’t ideal.

Creditors and investors like to see higher liquidity ratios, such as 2 or 3. The higher the ratio is, the more likely a company is able to pay its short-term bills. A ratio of less than 1 means the company faces a negative working capital and can be experiencing a liquidity crisis.

One of the critical growth factors. Creditors analyze liquidity ratios when deciding whether or not they should extend credit to a company. They want to be sure that the company they lend to can repay them. Any hint of financial instability may disqualify a company from obtaining loans.

How to use?

Business Health: Net profit is a key indicator of the financial health of a business. A consistently high or increasing net profit usually indicates a successful business, while a declining net profit could be a warning sign.


Investor Relations: For publicly traded companies, net profit is crucial for shareholders and potential investors when analyzing the value of the company.


Decision Making: Knowing the net profit helps business leaders make important decisions, like whether they can afford to expand, give raises, or invest in new ventures.


Financial Planning: It helps in assessing the company’s performance over a period and planning for future strategies.

How to use?

Profitability: The Net Profit Margin shows how profitable a company is. A higher margin indicates that the company is good at converting its revenue into actual profit, which is money that can be saved, invested back into the business, or distributed to shareholders.

Competitive Analysis: By comparing the Net Profit Margins of different companies in the same industry, businesses can gauge how well they are performing relative to their competitors.

Cost Control: A declining Net Profit Margin over time could be a sign that costs are rising too quickly compared to revenue. This is a red flag that management needs to control costs.

Investment Attractiveness: Investors often look at Net Profit Margin to assess whether a company is a good investment opportunity. Companies with higher Net Profit Margins are generally considered to be more stable and a safer bet for investment.

Financial Flexibility: A higher Net Profit Margin means the company has more flexibility to cope with unexpected challenges, such as economic downturns, increased competition, or supply chain issues. It can also invest in research and development, marketing, and other growth strategies.

Pricing Strategy: Understanding the Net Profit Margin helps in setting the right pricing strategy. A high margin might mean there's room for discounts and promotions, while a low margin could indicate a need for a price increase.

Operational Efficiency: A high Net Profit Margin often suggests the company is operating efficiently, with good control over its costs. On the other hand, a low or declining margin could signal operational inefficiencies that need to be addressed.

Business Strategy: The Net Profit Margin can also help a company decide whether to enter new markets, diversify its product line, or pursue other business strategies. A declining margin might suggest that it's time to focus on core operations rather than expansion.

How to use?

Profitability Indicator: A higher gross profit margin indicates a more profitable company with better control over its costs than its competitors.

Competitive Analysis: The gross profit margin can be used to compare the performance of a company against its competitors in the industry.

Business Strategy: It can indicate the company's pricing strategy and efficiency in production and supply chain management.

Investor and Lender Appeal: A healthy gross profit margin often makes the company more attractive to investors and lenders, as it suggests the company is financially stable and capable of generating profits.

How long it takes you to pay your suppliers on average.

Indicates profitability but excludes some non-operating costs.

Concept
Difference between LTV and CAC

What to avoid?
Ignoring customer satisfaction or support needs

Add here some interesting details about the product. Help people realize that this product is exactly what they need. It could be practical and useful information as well: the size of the product, material that it is made of, or care instructions.

The ideal CAC (Customer Acquisition Cost) to LTV (Customer Lifetime Value) ratio can vary significantly depending on the industry, business model, and specific circumstances of a company. However, as a general guideline, many businesses aim for a CAC to LTV ratio of 1:3 or better, meaning that the lifetime value of a customer is at least three times the cost of acquiring that customer.

Understanding operating expenses is like knowing the rules of a game; it helps you play better and increases your chances of winning. In the business world, "winning" means making enough money to keep the business going, grow bigger, and maybe even be the best in what you do. Here's why understanding operating expenses is so important:

1. Profitability: If you don't know how much you're spending, you can't figure out how much you're actually making. If a business spends more than it earns, it will lose money and might have to close down.

2. Budgeting: Knowing your operating expenses helps you plan better. You can allocate money for different parts of your business more effectively, so you're not suddenly left without enough money to operate.

3. Making Informed Decisions: When you know your operating costs, you can make smarter choices. For instance, if you know that one part of your business costs a lot but doesn't bring in much money, you might decide to change it or even stop it.

4. Price Setting: If you understand all the costs involved in producing your product or service, you can set a price that covers these costs and also leaves room for profit.

5. Efficiency: By regularly reviewing your operating expenses, you might find ways to do things more efficiently. Maybe you can find a cheaper supplier or cut out steps that aren't needed, saving money in the process.

6. Competitive Advantage: Understanding your costs can give you an edge over competitors. If you can operate more cheaply while maintaining quality, you can offer better prices or invest more in things like marketing or product development.

7. Growth Planning: If you're planning to grow your business, you need a clear picture of your operating expenses. This helps you understand how much more money you'll need to operate on a larger scale.

8. Investor and Loan Applications: If you want to get a loan or attract investors, they'll want to know about your operating expenses. This helps them decide whether your business is a good risk for their money.

9. Tax Benefits: Some operating expenses may be tax-deductible, which can help lower your business's tax bill. But you need to know what these are and how to account for them properly.

10. Crisis Management: In times of difficulty, knowing your operating expenses can help you make quick, necessary adjustments to keep your business running.

So, understanding your operating expenses is like having a map on a treasure hunt. It helps you make the right turns and avoid getting lost, increasing your chances of finding the treasure, which in business means becoming more successful.

How to use?
Understanding cash burn rate is like knowing how fast you're using up the fuel in your car. If you don't know your fuel consumption rate, you might run out of gas in the middle of nowhere! Similarly, if a company doesn't understand its cash burn rate, it could run out of money, and bad things could happen—like not being able to pay employees or buy important things needed for the business.

Planning and Sustainability: Knowing the cash burn rate helps a company plan better. If you know how much money you're using each month, you can figure out how to make that money last longer by cutting unnecessary expenses or finding new ways to make more money.

Investor Confidence: Investors want to know that a company is using its money wisely. A high cash burn rate, especially without signs of growth or profitability, could make investors worried and less likely to invest more money.

Financial Health: Check Just like a doctor checks your heartbeat, checking the cash burn rate is a quick way to understand the health of a company. A high burn rate compared to the cash coming in is a warning sign that the business might be in trouble.

Emergency Preparedness: If a company knows its cash burn rate, it can also calculate its cash runway—the time it has before the money runs out. This helps the company prepare for emergencies and decide if they need to borrow money or find other ways to keep the business alive.

Decision-making: With a clear understanding of cash burn rate, a company can make informed decisions. For example, is now the right time to hire more people? Or should the company first focus on making more sales to increase cash flow?

This is the period for which a company will remain liquid, given its current cash reserves and cash burn rate. It's crucial for startups and companies not yet generating positive cash flow.

Add here some interesting details about the product. Help people realize that this product is exactly what they need. It could be practical and useful information as well: the size of the product, material that it is made of, or care instructions.

Similar to Current Ratio but excludes inventory from current assets.

Add here some interesting details about the product. Help people realize that this product is exactly what they need. It could be practical and useful information as well: the size of the product, material that it is made of, or care instructions.

Add here some interesting details about the product. Help people realize that this product is exactly what they need. It could be practical and useful information as well: the size of the product, material that it is made of, or care instructions.

Add here some interesting details about the product. Help people realize that this product is exactly what they need. It could be practical and useful information as well: the size of the product, material that it is made of, or care instructions.

Add here some interesting details about the product. Help people realize that this product is exactly what they need. It could be practical and useful information as well: the size of the product, material that it is made of, or care instructions.

How to use?
Measure customer loyalty and the effectiveness of your offerings / use these segment to increase.

How to use?
Optimize pricing and sales strategies for better revenue.

Add here some interesting details about the product. Help people realize that this product is exactly what they need. It could be practical and useful information as well: the size of the product, material that it is made of, or care instructions.

How to use?
Understand the efficiency in each unit and impact on it.

Concept
Ratio of users adopting new features

What to avoid?
Not gathering user feedback or iterating on features

Concept
Proportion of users who stop using the product

What to avoid?
Focusing on acquisition, not user satisfaction

Concept
Proportion of users who stop using the product

What to avoid?
Focusing on acquisition, not user satisfaction

Concept
Ratio of users who renew or continue usage product value

What to avoid?
Overlooking upsell or cross- sell opportunities

Concept
Duration a user remains with the product

What to avoid?
Neglecting customer support or relationship building

Concept
Over all assessment of customer relationship

What to avoid?
Relying solely on quantitative data

Concept
Duration for a user to experience product benefits

What to avoid?
Neglecting user experience or focusing only on TTV

What it tells you?
Neglecting user experience or focusing only on TTV

How to calculate it
Neglecting user experience or focusing only on TTV

Concept
Ratio of users finishing the onboarding process

What to avoid?
Ignoring user feedback or not iterating on onboarding

Concept
Ratio of users reaching a milestone in onboarding

What to avoid?
Overlooking other milestones or user engagement factors

Concept
Ratio of trial users becoming paying customers

What to avoid?
Focusing solely on conversion, not user satisfaction

Concept
Ratio of first-time users completing a desired action

What to avoid?
Not considering user retention or long-term engagement

Concept
The ratio of DAU to MAU, representing how often users return

What it tells you?
- Indicates user retention and frequency of engagement
- A higher ratio means users visit more often

Concept
Average time users spend on your app/website per session

What to avoid?
Focusing on quantity over quality; ensure the time spent is productive and valuable

How to calculate it
1. Track session duration
2. Calculate the average across all users

Concept
Percentage of users who successfully complete specific tasks

What to avoid?
Ambiguous task definitions; clearly define what constitutes a completed task

How to calculate it
1. Identify key tasks 2. Track task completions 3. Divide completions by total users attempting the task

Concept
Number of times users share your content/product on social media

What to avoid?
Ignoring the quality and sentiment of shared content; analyze shared content for user sentiment

How to calculate it
1. Track shares through in-app analytics

Concept
Volume of content created by users (reviews, comments, etc.)

What to avoid?
Neglecting content quality and relevance; consider the value provided by user generated content

How to calculate it
1. Monitor content submissions, count user-generated content across various channels

Concept
Number of unique actions users take per session

What to avoid?
Overloading users with options; ensure interactions are meaningful and valuable

How to calculate it
1. Track user actions
2. Calculate average unique actions per session

What it tells you?
Product's viral growth and word-of-mouth effectiveness

What to avoid?
Relying solely on virality for growth

What it tells you?
Customer satisfaction and product advocacy

What to avoid?
Ignoring non-referral acquisition channels

What it tells you?
Effectiveness of referral program in driving user growth

What to avoid?
Offering incentives that harm long-term user engagement

What it tells you?
Customer satisfaction and loyalty

What to avoid?
Focusing on NPS without addressing underlying issues

What it tells you?
Insight into the variety and performance of referral sources

What to avoid?
Over-reliance on a single referral source

How to calculate it?
Analyze referrals by source (e.g., email, social media, friends)

What it tells you?
Effectiveness and profitability of the referral program

What to avoid?
Focusing only on short-term ROI without considering long-term impact on customer relationships

Concept
Proportion of users who exit after viewing one page

What to avoid?
Ignoring landing page quality or targeting issues

Concept
Ratio of users completing a desired action

What to avoid?
Focusing only on quantity, not quality of actions

Concept
Ratio of users taking action on a specific page

What to avoid?
Neglecting other pages or user experience

What it tells you?
Efficiency of marketing and sales efforts in acquiring customers

What to avoid?
Overlooking customer lifetime value (CLV)

What it tells you?
Success of each channel in driving desired outcomes

What to avoid?
Relying solely on one channel or not testing others

How to calculate it?
Compare key metrics (e.g., traffic, sign- ups) across channels

What it tells you?
Insight into the variety and performance of traffic sources

What to avoid?
Failing to diversify or optimize traffic sources

How to calculate it?
Analyze incoming traffic by source (e.g., organic, referrals, paid)

How to use?
Improve and promote products with higher customer satisfaction.

While exact criteria can vary by country, bank, and specific loan product, common factors include:
1. Credit Score: Both the business and the owner's personal credit scores are often reviewed.
2. Business Plan: A detailed business plan showing the purpose of the loan, projected financials, and a repayment plan.
3. Cash Flow Statements: Banks want to see a healthy cash flow to ensure that the business can repay the loan.
4. Balance Sheet: Provides an overview of the company's assets, liabilities, and equity, offering insights into financial health.
5. Profit and Loss Statements: Past P&L statements can indicate the profitability of the business.
6. Collateral: Assets that can be used to secure the loan, reducing risk for the bank.
7. Debt-to-Income Ratio: Shows the business's existing debt obligations and whether it can afford to take on more debt.
8. Length of Time in Business: Longer operational history often indicates a less risky investment for the bank.
9. Industry Risk: Some banks assess the level of risk associated with the industry the business operates in.
10. Owner's Equity: The amount of personal investment by the owner can demonstrate commitment and reduce the bank's risk.
11. Legal Standing: Ensuring the business is in good legal standing, with all licenses and permits up-to-date, is essential.
12. References: Banks may request professional or financial references to validate the business’s reputation.
13. Personal Guarantee: Some banks require a personal guarantee from the business owner or key partners, which makes them personally responsible for repaying the loan if the business cannot.
14. Market Conditions: Economic factors or market trends may also play a role in the bank's decision-making. Understanding and preparing for these criteria can greatly improve a small business's chances of securing a loan.

The score is usually based on a range of factors gathered from your credit reports. These can include:
1. Payment History (35%): The record of your payments on credit accounts, including credit cards, mortgages, and other loans. Late payments, bankruptcies, and other negative items can significantly impact this part of the score.
2. Credit Utilization (30%): This is the ratio of current credit card balances to credit limits. Lower ratios are viewed more favorably, as they suggest that you haven't maxed out your credit cards and can manage your debt well.
3. Length of Credit History (15%): This takes into account how long each of your credit accounts has been active. A longer credit history is generally seen as favorable because it offers more data on your spending habits and payment behavior.
4. Types of Credit in Use (10%): This includes all different types of credit, such as credit cards, retail accounts, installment loans, mortgage loans, etc. A mix of different types of credit can be favorable.
5. New Credit (10%): This includes the number of recently opened credit accounts and the number of recent inquiries into your credit report. Opening many accounts in a short amount of time can be seen as risky behavior.
6. Public Records: Bankruptcies, tax liens, and civil judgments can also affect your credit score. These are generally not part of the percentage breakdown but can have a significant negative impact.
7. Other Factors: Some models may also look at your employment history, current income, and other factors, although these are not typically part of the credit score calculation.

Different countries and credit bureaus have their own ways of calculating credit scores, and they might weigh each factor differently. In the United States, scores generally range from 300 to 850, and each lender may have its own criteria for what constitutes a "good" or "bad" score. Knowing these factors and understanding where you stand can help you improve your credit score over time.

How to use?
Break-even is important because it helps a business know when it's not losing money and can start making a profit. It's like a starting point for making money in a smart way.