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FP&A Glossary

A complete library of terms, metrics, and calculations for your business.

All Metrics

Annual recurring revenue (ARR) is the amount of predictable revenue your business earns in a year from customers.

Average revenue per account (ARPA) is the average monthly recurring revenue (MRR) per customer.

ARPU is the average monthly recurring revenue (MRR) per user.

Burn multiple measures how much money a company spends to generate new revenue.

Burn Productivity measures the change in gross profit compared to total operating expenses generated over the prior six months.

Burn rate is defined as the negative free cash flow (FCF) during the month.

Customer Acquisition Cost (CAC) payback is the number of months it will take to recover the cost of acquiring a customer.

Your cash flow break-even point is the point where your operating cash inflows match your operating cash outflows.

Cash flow from financing activities are inflows and outflows of cash used to fund the business for a given period.

Cash flow from investing activities reports the amount of cash that has been generated or spent on various investment-related business activities.

Cash flow from operating activities is a measure of how much money your company brings in for its typical, ongoing business activities.

Cash flow to debt ratio is a metric businesses use to understand its ability to pay down its debt based on its operating cash flow.