Plain-English definitions of the financial terms every business owner should know. No jargon, no textbooks — just clarity.
How fast your business spends cash. The single most important metric for startups and growing companies.
How many months you can operate at your current burn rate before running out of cash.
The movement of money in and out of your business. Not the same as profit — and often more important.
Money your customers owe you. Revenue on paper, but not cash in your account until they pay.
Money you owe your vendors and suppliers. Managing the timing is critical to cash flow health.
Earnings before interest, taxes, depreciation, and amortization. A proxy for operational profitability.
The predictable revenue a subscription business earns each month. The foundation of SaaS metrics.
Revenue minus cost of goods sold, expressed as a percentage. How much you keep before operating expenses.
Current assets minus current liabilities. The cash available to fund day-to-day operations.
When you can officially count revenue. Collecting cash and recognizing revenue are different things.
The direct costs of producing what you sell. Materials, labor, hosting — anything directly tied to delivery.
The percentage of revenue that remains after all expenses. The bottom line of your financial health.
CentSight doesn't just define these terms — it calculates them from your actual financial data, in real time.