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Finance Metrics
The most important Finance metrics and KPIs. Learn about what metrics and KPIs are best for you, vote, and contribute your own.
Full-Time Employees
Full-Time Employees are permanent staff members who typically work more than 30 hours per week or four days weekly, depending on your organisation's definition and local labour standards. Unlike temporary, seasonal, or contract workers, full-time employees represent your core workforce with ongoing employment relationships. In most jurisdictions, full-time employees are entitled to comprehensive benefits including healthcare coverage, vacation pay, statutory holidays, and other employment standards protections as defined by local labour laws.
Full-Time Equivalents
Full-Time Equivalents (FTE) is a standardised workforce measurement that converts all employee types—full-time, part-time, contractors, interns, and temporary workers—into equivalent full-time positions. This calculated metric provides a unified view of your total workforce capacity by expressing everyone's contribution as fractions of a standard full-time schedule (typically 40 hours per week or 5 days). Unlike simply counting heads, FTE gives you the true picture of your organisational capacity and enables accurate cross-company comparisons regardless of employment structure.
Gross Burn
A company's Gross Burn is the total cash spent on operations. These costs typically include all salaries, rent, and other overhead as well as interest and taxes. This metric is often confused with Net Burn, which is a measure of negative cash flow, and includes revenue and expenses.
Gross MRR Churn Rate
Gross Monthly Recurring Revenue Churn Rate (Gross MRR Churn Rate) is the percentage of recurring revenue lost due to both cancellation and downgrades. Note that it is common to express this metric as a monthly rate, though it can also be expressed as Gross ARR Churn Rate.
Gross Margin
Gross Margin is a profitability ratio that measures Gross Profit as a percentage of total revenue. Typically, it is calculated as Gross Profit divided by Revenue. This metric is a key indicator of a company's financial health and operational efficiency.
Gross Profit
Gross Profit is the amount left over from total revenues after Cost of Goods Sold (COGS) has been deducted. COGS will typically include the cost of making and selling the product or the cost of services provided by the company.
Inventory Turnover
Inventory Turnover measures how often, in a given time-period, your organization is able to sell its entire inventory. Inventory Turnover is an important efficiency metric and is helpful in analyzing pricing, product demand, and, of course, inventory purchase and costs. It is also a critical tool when selling perishable goods, where the potential for waste is high.
Invoices
The Invoices metric counts the number of invoices you have sent to your customers. It is helpful to track Invoices to keep a tab on what is owed to you.
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.
Logo Churn
Logo Churn is the enemy of any subscription company. Logo Churn is the number or percentage of subscribers to a service that discontinue their subscription to that service in a given time period.
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".
Monthly Recurring Revenue
Monthly Recurring Revenue (MRR) is the sum of all subscription revenue expressed as a monthly value. For most companies, MRR is the sum of all new business subscriptions and upgrades (sometimes called expansion), minus downgrades (or contractions) and cancelled subscriptions. Though not a Generally Accepted Accounting Principle (GAAP) value, it's the Revenue equivalent used by every SaaS company. MRR is used interchangeably with ARR.