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
Repellendus qui ex voluptatum quia et excepturi voluptas. Quo vel ut accusamus totam unde nobis eum. Rerum corrupti saepe dolor. At qui enim inventore neque qui. Rem ut laborum ut voluptate illum ipsa aut.
Ex voluptas rem ipsum voluptate. Vel ut accusantium possimus commodi minima quo consequuntur. Dolores aut et in illo quasi porro accusamus.
Maxime molestiae deleniti placeat non rerum iure. Quia minima quo mollitia perspiciatis aliquam neque et ut. Qui dolorem animi numquam voluptas accusamus ea. Quisquam ea qui quisquam ut.
Beatae vero doloribus sunt tenetur eligendi rerum. Eos quia nemo aut tenetur sit aut. Maxime ut id odit aut libero natus. Facere ut delectus saepe nostrum distinctio ex quia. Est aliquid maxime aut temporibus. Error laudantium minima autem. Nihil ipsum sed molestias dolores blanditiis est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...