ARR (annual recurring revenue) (MRR - monthly recurring revenue - and different other variations are in existence)
What is it? - Value of the recurring revenue of a business’s normalized for a single calendar year (Mainly for SaaS Companies)
How to Calculate? If client has paid 25,000 USD for 2-year subscription, the ARR is 12,500 USD.
CARR (committed annual recurring revenue)
 What is it? Differs from ARR because it takes into effect known future business and known future cancellations that don’t yet show up in ARR
How to Calculate? ARR + signed contracts expected Churn
Churn Rate (Also, rate of attrition)
What is it? The rate in which clients leaves the business within given time period.
How to Calculate? Percentage of service subscribers who discontinue their subscriptions. Can be calculated based on amount of revenue or number of clients
CAC (Customer Acquisition Cost)
What is it? Measures how much an organization spends to acquire new customers
How to Calculate?Total marketing campaign costs related to acquisition
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Total customers acquired
CAC Payback
What is it?Number of months/years it takes a Company to recoup its customer acquisition costs
How to Calculate? Customer Acquisition Cost (CAC) divided by MRR/ARR
LTV (Customer Lifetime Value)
What is it? The total income a business can expect to bring in from a typical customer for as long as that person or account remains a client
How to Calculate? Average Transaction Size x Number of Transactions x Retention Period
ARPU (Average Revenue Per User)
What is it? The revenue generated by each user over a given period of time, taken as an average
How to Calculate? Total revenue generated during specific time period
 /
Active users during the same period
TSR (Total Shareholder Return)
What is it? The total amount an investor reaps from an investment—specifically, equities or shares of stock.
How to Calculate? Usually expressed as a percentage, TSR factors in capital gains and dividends from a stock; it might also include special distributions, stock splits, and warrants.
DSO (days sales outstanding)
What is it? Average number of days it takes a business to receive payment for goods and services
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Working capital
What is it? Measure of a company’s liquidity and short-term financial health. positive working capital balance indicates robust financial strength, while negative working capital is considered an indicator of impending bankruptcy
How to Calculate? difference between a company's curent assets and current liabilities
Gross Margin
What is it? If you’re spending more money to produce and sell a product than you’re getting in return
How to Calculate? total revenue left after factoring in cost of goods sold (COGS)