Finance

Free Cash Flow represents the amount of cash generated by a company’s operations that is available for distribution to investors, debt reduction, or reinvestment in the business.

Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect payment from its customers after a sale has been made.

DPO measures the average number of days it takes for a company to pay its suppliers or vendors after receiving goods or services.

COGS represents the direct costs associated with producing or purchasing the goods that a company sells during a specific period.

CapEx refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment.

Cash Runway is a financial metric that measures the number of months a company can continue operating without running out of cash.

The burn rate is the pace at which a new company is running through its startup capital ahead of it generating any positive cash flow.

Billings is a financial metric that measures the total amount of revenue generated from sales or services provided during a specific period, regardless of whether payment has been received.

ACV refers to the total value of a customer contract, averaged over a year.

ARR represents the anticipated annual revenue generated from subscription-based services or products. It is a forward-looking metric that provides a more stable and predictable measure of a company’s revenue compared to one-time sales.