Retention
Retention refers to the customer's internal relationship to a company. It can be an important factor in evaluating a company's financial health and prospects. Thus, retention is also reflected in the Quality of Earnings Report.
ROI - Return on Investment
Return on Investment (ROI) is an important financial indicator that measures the relationship between the profit achieved and the capital invested in an investment. It is used to evaluate and compare the profitability and efficiency of investments.
Calculation: ROI = (profit / investment costs) × 100
Run Rate
The Run Rate is a financial indicator that predicts a startup’s performance in future based on current financial data. It is often used to estimate a company's expected annual turnover by adding current sales figures to a full year.
Calculation: Run Rate = (Revenues in current period / Number of days in period) × 365
Runway
(Cash) Runway is an important financial indicator for startups and companies. It specifies how long a company can operate with the current cash before it needs additional capital.