Join our newsletter for the latest in SaaS By subscribing you agree to receive the Paddle newsletter. Unsubscribe at any time.Why gross margin is important and how to calculate it What is service revenue and how
Time to Value (TTV) Average Revenue Per User (ARPU) Of all the metrics you need to track as a SaaS company, lifetime value (LTV) may be the most mysterious. It feels difficult to calculate, and once you have the calculation, you don’t know what to do with it, whether good or ba...
They’re also a big help with sales forecasting; by knowing your average conversion rates in each pipeline stage, you’ll be able to estimate how much revenue your current set of active leads will likely generate.Related: Do you know the difference between a sales pipeline and a sales ...
Break-even analysis in economics, business, andcost accountingrefers to the point at which total costs andtotal revenueare equal. A break-even point analysis is used to determine the number of units or dollars of revenue needed to cover total costs (fixed and variable costs). Key Highlights B...
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You can calculate your liquidity by assessing yourcurrent ratio: As a rule of thumb, this ratio should stay above 1. 3. Solvency While liquidity is your ability to meet your short-term financial obligations, solvency is your ability to meet your long-term financial obligations. You can do th...
A firm's revenue is where its supply and demand curve intersect, producing an equilibrium level of price and quantity. Price multiplied by quantity at this point is equal to revenue. This calculation is relatively easy if you already have the supply and demand curves for the firm. If not, ...
They were all the rage (until they weren’t). Check out theGoogle Trendsgraph of the popularity of fidget spinners: Not great. Choosing a niche is a challenging balance. On one end, you want to ensure that there is enough demand for your products, but not so much competition that it’...
To determine gross profit projections using simple linear regression, you need to have two variables: one dependent and one independent. In this case, the gross profit will be dependent, while an independent value would be the cost of goods sold or revenue. ...
You’re missing out on deeper insights that drive real impact. Learn which KPIs matter most and how to integrate them. Download Now How to Calculate DSO? To calculate DSO, divide the total accounts receivable for a given period by the total credit sales for the ...