Insights from FinStrat Management
Your Resource Hub
This Insights page serves as your content hub, offering actionable guidance and expert perspectives on these crucial topics. FinStrat Management provides clarity on everything from mastering cash flow and decoding essential metrics to meeting investor expectations and strategically scaling your finance function. We aim to bridge the knowledge gap, empowering founders and investors with the financial acumen needed for success, while highlighting how partnering with experienced professionals can translate these insights into effective implementation, strategic advantage, and operational excellence within the demanding startup ecosystem.
Insights
Essential Liquidity Ratios and Metrics
Essential Liquidity Ratios and Metrics It’s vital for SaaS companies to understand how well they can meet their near-term financial responsibilities, and it is something both investors and lenders will be interested in. The two most commonly used...
What are Financial Leverage Ratios and Why Are They Important?
What are Financial Leverage Ratios and Why Are They Important? The importance of leverage ratios and metrics can’t be overlooked when assessing a company’s financial capacity and risk. With these ratios, businesses can make informed decisions about...
Annual Contract Value: What is it and How to Calculate
Annual Contract Value: What is it and How to Calculate In today’s competitive SaaS landscape, understanding and optimizing the SaaS Annual Contract Value (ACV) can provide value. A well-executed ACV strategy can provide invaluable insights into a...
Understanding SaaS Remaining Performance Obligations
Understanding SaaS Remaining Performance Obligations SaaS companies need to understand what their Remaining Performance Obligations (RPOs) are for liquidity management and to plan for future expansions. Publicly traded SaaS firms are now required...
CAC Payback Period vs. CLTV/CAC
CAC Payback Period vs. CLTV/CAC Understanding and measuring sales efficiency is critical to a new or established SaaS business's short-term and long-term success. However, in addition to the CAC payback period there are several sales efficiency...
What is an Outsourced CFO
What is an Outsourced CFO? For SaaS businesses wanting to stay competitive in the rapidly changing market, it’s key to have to have an effective financial strategy. A great way to do this without breaking the budget is through outsourced CFO...
Understanding the SaaS Net Promoter Score (NPS)
Understanding the SaaS Net Promoter Score (NPS) To be successful in the fast-paced SaaS industry, ensuring customer satisfaction and loyalty is critical. One way to measure this is through the SaaS business’s Net Promoter Score (NPS), which gives...
Guide to Increasing Your SaaS Average Revenue Per Account (ARPA)
Guide to Increasing Your SaaS Average Revenue Per Account (ARPA) In today’s competitive SaaS landscape, the success of your business will, in large part, depend on how effectively you can maximize your revenue streams. One crucial metric that can...
The Customer Lifetime Value (CLTV)/Customer Acquisition Cost (CAC) Ratio
The Customer Lifetime Value (CLTV)/Customer Acquisition Cost (CAC) Ratio SaaS firms rely heavily on the balance between gaining new customers and keeping existing ones. The SaaS CLTV: CAC ratio provides a valuable indication of customer...
How to Calculate the SaaS Quick Ratio
What is the SaaS Quick Ratio? The SaaS Quick Ratio is a financial efficiency metric that aims to assess how well a SaaS business is retaining customers and revenue compared to generating new revenue. Put another way, it measures the monthly...
