Return on Invested Capital is a profitability metric used to measure return on capital investments. It is calculated by dividing Net Operating Profit After Tax (NOPAT) by invested capital.

Revenue is the total income generated from a company's primary business operations before deducting any costs or expenses. Often called the "top line" because it appears at the top of the income statement, revenue represents the gross amount earned from core business activities such as product sales, service fees, subscriptions, or licensing agreements.

Revenue Growth Rate measures the percentage increase in a company's revenue over a specific time period. This fundamental metric indicates your company's momentum, market position, and overall business health. As one of the most scrutinized metrics by investors, executives and stakeholders, it provides critical insights into the effectiveness of your sales strategies, market expansion efforts, and product development initiatives.

Revenue per Employee is a measure of the total Revenue for the last twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Also known as Revenue to Employee Ratio, this ratio is among the most universally applicable and is often used to compare companies within the same industry.

The SaaS Magic Number is a ratio showing yearly recurring revenue growth gained for every sales and marketing dollar spent. It indicates the level of operational efficiency of a company, as well as the sustainability of sales and marketing expenditure.

SaaS Quick Ratio is used to measure the growth efficiency of a company, but is often overlooked by early stage entrepreneurs and investors. Think of SaaS Quick Ratio as a health measure of company growth.

The Sales and Marketing to Revenue Ratio represents the percentage of total revenue that a company invests in its sales and marketing activities. This metric serves as a critical indicator of how efficiently a company is acquiring and retaining customers relative to the revenue those efforts generate. It encompasses all costs associated with customer acquisition, including advertising spend, sales team compensation, marketing technology, promotional activities, trade shows, content creation, and customer relationship management systems. This ratio is particularly valuable for assessing the scalability and sustainability of a company's growth strategy. A well-optimised ratio indicates that the company is investing appropriately in revenue-generating activities without over-spending on customer acquisition, while maintaining the ability to compete effectively in its market. The metric also provides insight into a company's operational maturity and its ability to generate profitable growth over time.

SAM measures the revenue opportunity of capturing a specific market for a product or service within your limitations and reach.

Serviceable Obtainable Market (SOM) measures the realistic revenue potential of a product or service in a particular market.

The Subscribers metric counts the number of paid or non-paid users who have periodic access to a product or service. Most often, this metric refers to a subscription-based business model, for example, newspapers, magazines, phone, internet service, the use of software-as-a-service (SaaS), or even access to seasonal theatre performance.

The Rule of 40 is a SaaS financial metric that balances revenue growth versus profit margins. It’s a rule of thumb to quickly determine the health and/or attractiveness of your SaaS company.

Total Addressable Market (TAM) is a measure of the revenue opportunity of capturing 100% of the market for a product or service.