A comprehensive guide to understanding and communicating key startup concepts. Your Go-To Resource for Startup Terminology: A Glossary of Key Metrics, Definitions, and Formulas
A profit and loss statement, also known as an income statement or a statement of operations, is a financial statement that summarizes a company's revenues, expenses, and profits over a specific period of time.
Read MoreTo calculate profit, you need to subtract a company's expenses from its revenue.
Read MoreTo calculate profit margin, you need to divide the company's net income by its revenue and multiply the result by 100% to express it as a percentage.
Read MoreQualified small business stock (QSBS) refers to stock in a qualified small business that is held by the original purchaser for more than five years.
Read MoreThe quick ratio, also known as the acid-test ratio, is a measure of a company's liquidity and ability to meet its short-term financial obligations.
Read MoreRamp time is the amount of time it takes for a system or process to reach its full operating capacity.
Read MoreThe repeat customer rate is the percentage of customers who make repeat purchases from a business.
Read MoreRetention refers to the ability of a company to keep its employees, customers, or other stakeholders over time.
Read MoreRevenue recognition is the process of identifying and recording revenue in the financial statements of a business.
Read MoreA right of first refusal (ROFR) is a legal term that refers to the right of a person or entity to have the first opportunity to purchase or acquire something before it is offered to others.
Read MoreA roll-up vehicle, also known as a RUV, is a company that is created specifically for the purpose of acquiring and consolidating smaller companies in a particular industry or market.
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