How to calculate the financial efficiency of a recurring business?

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To calculate the financial efficiency of a recurring business, it is necessary to analyze some metrics, such as:



ROI (Return on Investment);
CAC (Customer Acquisition Cost);
MRR (Monthly Recurring Revenue);
Average Ticket;
Default Rate;
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization);
Gross Margin (how much the company earns from each sale made);
Net Margin (is the relationship between net profit and total revenue).
Other important indicators for recurring businesses are LTV (Lifetime Value), which belgium mobile database how much each customer spent on your company in a given period, and Churn, which is the cancellation rate of your services.
Therefore, by analyzing each of these indicators, it will be possible to evaluate the financial efficiency of your business and determine which points should be improved and which costs and expenses should be cut or reduced.