Return Rate measures the share of units sold that customers send back and your team accepts within the policy window. It focuses on item counts, not dollars. Use it to surface fit issues, fragile packaging, misleading product details, and fulfilment mistakes that drive avoidable returns. Track it by SKU, variant, size, and channel to see where problems cluster.

Return on Ad Spend (ROAS) is a marketing metric that quantifies the total revenue generated for every dollar spent on advertising. In other words, ROAS measures the effectiveness of your advertising efforts by comparing total ad spend on campaigns to the revenue from those campaigns.

Return on Incremental Invested Capital is an efficiency metric used to measure the change in earnings as a percentage of incremental investments.

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.

Sales Cycle Length is the count of the number of days or months it takes on average to close a deal. This metric can be helpful when creating sales forecasts, measuring sales efficiency, and speaking with investors. It is often referred to as the Average Deal Cycle and is usually expressed in months.

A Sales Qualified Lead (SQL) represents a prospect who has progressed beyond initial marketing engagement and demonstrates genuine potential for conversion. Unlike Marketing Qualified Leads (MQLs) that indicate early interest, SQLs have been vetted by sales professionals and meet specific criteria that suggest a higher likelihood of becoming a paying customer. These leads sit strategically in the middle of your sales funnel, having moved past the awareness stage but not yet reached the final purchase decision point.

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.