ATS Friendly parameters
<aside>
➡️ Top 3 key metrics that provide a strong foundation for understanding a company's financial health:
</aside>
- Revenue: This is the lifeblood of any business. It tells you how much money the company is bringing in through its core operations. Look for trends in revenue growth - a steady increase is generally positive.
- Profitability: There are different profitability metrics, but a common one is net profit margin. This shows what percentage of revenue remains as profit after all expenses are paid. A higher net profit margin indicates better efficiency and ability to generate profit.
- Liquidity: This refers to a company's ability to meet its short-term obligations. A good metric to evaluate liquidity is the current ratio. It compares current assets (convertible to cash within a year) to current liabilities (debts due within a year). A ratio above 1 indicates the company has enough short-term assets to cover its short-term debts.
Top 3 Metrics evaluated by an investor:
- Runway
- Burnrate
- ARR
Top 6 Areas of Business startups teach you:
- Business
- Technology
- Sales
- Revenue
- Partnerships
- Management
- Leadership
Metrics Calculation