There aretwo main approachesto calculating customer lifetime value.This article discusses the simple approach to calculating customer lifetime value – which is appropriate to use when customer profit contribut
Customer lifetime value is an essential metric for understanding the performance and potential of a SaaS business. There’s more than one way to calculate LTV—here’s how we do it, and why.
The CPI is widely criticized by practioners for being an imperfect measure of inflation, akin to the usage of beta as a measure of risk, yet the CPI continues to be the most utilized proxy for inflation due to the absence of a more reliable model. With that said, calculating inflation ri...
If we were calculating the basic EPS, which excludes the impact of dilutive securities, the EPS would be $2.00. Basic EPS = 200,000 ÷ 100,000 = $2.00 But since we must account for the ITM securities not yet exercised, we multiply the potential shares issued by the average exercise pric...
A capital expenditure, CapEx for short, is the payment with either cash or credit to purchase long-term physical or fixed assets used in a business’s operations.
How to calculate average handle time The formula for calculating average handling time will vary depending on the channel you’re measuring. Below are three AHT formulas for different customer service communication channels. Call AHT formula The AHT formula for phone calls considers call handling and...
the calculation of harmonic mean will become complex and time-consuming. With complexity comes confusion and chances of error. So one needs to be very careful while calculating the harmonic mean of a large data set. Since we take reciprocal in a calculation of harmonic mean, the highest weight...
The formula for calculating overtime payment as per FLSA is Overtime pay = Hourly Pay Rate x 1.5 x Extra Hours Worked. Let’s consider a scenario of a nonexempt employee who worked 45 hours in a workweek beyond the regular working hours of 40 hours. He earns $20 per hour. We have ...
Calculating Net Cash The net cash formula is given asCash Balance – Current Liabilities. In the formula, the cash balance is used to describe all cash the company holds plus highly liquid assets. Moreover, current liabilities include all financial and non-financial liabilities. ...
Calculating that difference related to higher and lower-risk bonds is precisely what the z-spread does. Below, we show you how it's measured and why it's crucial to any bond investor. What the Zero-Volatility Spread (Z-Spread) Tells You ...