SaaS company unit economics and ROIC?
Hi guys:
Does anyone know how to calculate the unit economics and ROIC of a SAAS company? For unit economics, I figured it would be customer life time value / CAC. What about ROIC - what are the denominators and numerators for Saas company ROIC in this case?
Thanks!
I am not going to give exact formulas here, as it's more important to think intuitively first. You don't seem to be grasping the logic based on how you phrased your question.
For unit economics of any one customer, the way I think through it, what is the monthly/daily/annual/weekly revenue that you can expect from them times the average life duration of one customer. From that you subtract the cost of acquiring that customer and any variable costs associated with servicing him/her.
For a tech company, I would calc ROIC as this: EBT or EBIT / (Intellectual Patents + Change in Working Capital + PPE).
Thanks! How would you calculate ROIC for a Saas company with negative EBIT/EBT?
Normalize the expenses or revenue but this is situation specific
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