ATS Friendly parameters

<aside> ➡️ Top 3 key metrics that provide a strong foundation for understanding a company's financial health:

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  1. 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.
  2. 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.
  3. 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:

  1. Runway
  2. Burnrate
  3. ARR

Top 6 Areas of Business startups teach you:

Metrics Calculation