The DashViz glossary.
Definitions of the business metrics owners and operators track — formulas, examples, and benchmarks. Updated as new terms matter.
AOV(Average Order Value)
Average order value (AOV) is the average dollar amount of an order in a given period. It is calculated as total revenue divided by total orders. AOV measures how much customers spend per transaction; raising AOV is one of the highest-leverage growth levers for an e-commerce or retail business because it lifts revenue without acquiring new customers.
CAC(Customer Acquisition Cost)
Customer acquisition cost (CAC) is the total amount a business spends to acquire one new paying customer in a given period. It includes marketing, sales, and ad spend. CAC is calculated as total acquisition spend divided by new customers acquired. Tracking CAC alongside customer lifetime value (LTV) shows whether growth is profitable or burning cash.
Churn Rate
Churn rate is the percentage of customers (or revenue) that a business loses in a given period. Logo churn measures customer count loss; revenue churn measures dollar loss. Churn rate is calculated as customers lost divided by customers at start of period. Reducing churn is often more leverage than acquiring new customers because retained customers compound.
LTV(Customer Lifetime Value)
Customer lifetime value (LTV) is the total revenue a business expects to generate from a single customer over the entire customer relationship. LTV is calculated as average revenue per customer divided by customer churn rate. LTV measures how valuable each customer is and pairs with CAC to show whether growth is profitable.
MRR(Monthly Recurring Revenue)
Monthly recurring revenue (MRR) is the total predictable subscription revenue a business expects to generate each month. MRR is calculated as the sum of monthly subscription value across all active customers. MRR is the core metric for SaaS businesses because it normalizes annual contracts and shows month-over-month growth or decline.
ARR(Annual Recurring Revenue)
Annual recurring revenue (ARR) is the annualized value of a business's recurring subscription revenue. ARR is calculated as MRR multiplied by 12, or as the sum of all annualized contract values. ARR is the standard headline number for SaaS company valuation and reporting because it normalizes month-to-month volatility.
Gross Margin
Gross margin is the percentage of revenue remaining after subtracting the direct cost of producing the goods or services sold (COGS). It is calculated as (Revenue minus COGS) divided by Revenue. Gross margin measures pricing power and production efficiency; raising gross margin compounds across every dollar of revenue.
NRR(Net Revenue Retention)
Net revenue retention (NRR) measures how much revenue from existing customers grows or shrinks year-over-year, including upgrades, downgrades, and churn. NRR over 100% means existing customers are expanding faster than churning. NRR is a critical SaaS metric because it shows whether the business compounds without new customer acquisition.
COGS(Cost of Goods Sold)
Cost of goods sold (COGS) is the direct cost a business incurs to produce the goods or services it sells. COGS includes raw materials, direct labor, and direct production overhead — but excludes indirect costs like marketing, rent, or executive salaries. COGS subtracted from revenue gives gross profit.
A/R Aging(Accounts Receivable Aging)
Accounts receivable aging (A/R aging) is a report that buckets unpaid customer invoices by how long they've been outstanding — typically 0-30, 31-60, 61-90, and over 90 days. The longer an invoice ages, the less likely it is to be collected. A/R aging is a leading indicator of cash flow problems and customer health.
A/P Aging(Accounts Payable Aging)
Accounts payable aging (A/P aging) is a report that buckets unpaid vendor bills by how long they've been outstanding — typically 0-30, 31-60, 61-90, and over 90 days. A/P aging shows how aggressive a business is at managing payment terms — and whether it's straining vendor relationships.
Utilization Rate
Utilization rate is the percentage of available work hours that are billable to clients. It is calculated as billable hours divided by total available hours. Utilization is the central metric for professional services firms — consulting, agencies, accounting, law — because it measures how efficiently the team converts capacity to revenue.
Repeat Customer Rate
Repeat customer rate is the percentage of customers who make more than one purchase in a given period. It is calculated as repeat customers divided by total customers. Raising repeat customer rate is one of the highest-leverage growth levers for e-commerce because acquiring an existing customer's second order is dramatically cheaper than acquiring a new customer.
Conversion Rate
Conversion rate is the percentage of visitors (or leads) who take a desired action — typically making a purchase, signing up, or starting a trial. It is calculated as conversions divided by total visitors. Conversion rate is the central efficiency metric for any acquisition funnel; small gains compound across every dollar of traffic.
ARPU(Average Revenue Per User)
Average revenue per user (ARPU) is the average revenue a business generates per active user or customer in a given period. ARPU is calculated as total revenue divided by total active users. ARPU measures monetization efficiency; for SaaS and subscription businesses, ARPU and customer count together drive total revenue.
RevPAR(Revenue Per Available Room)
Revenue per available room (RevPAR) is a hospitality metric that shows how much room revenue a hotel earns for each available room in a period. It combines occupancy and average daily rate into one number, making it useful for understanding whether revenue changes come from higher rates, better occupancy, or both.
ADR(Average Daily Rate)
Average daily rate (ADR) is the average room revenue earned per occupied room in a period. It is calculated as room revenue divided by rooms sold. ADR shows pricing power, but it should be read with occupancy and RevPAR because rate increases can hurt total revenue if too many rooms go unsold.
DSO(Days Sales Outstanding)
Days sales outstanding (DSO) measures the average number of days it takes to collect payment after a sale or invoice. It is calculated from accounts receivable, credit sales, and days in the period. DSO is a cash-flow metric for wholesale, professional services, manufacturing, and other invoice-based businesses.
First-Time Fix Rate
First-time fix rate is the percentage of field service jobs resolved on the first visit without a return trip. It is calculated as first-visit resolutions divided by total completed jobs. The metric is important for HVAC, plumbing, electrical, maintenance, and other service teams because repeat visits reduce capacity and margin.
Inventory Turnover
Inventory turnover measures how many times a business sells and replaces its inventory in a period. It is calculated as cost of goods sold divided by average inventory. Retailers, wholesalers, and manufacturers use it to spot slow-moving stock, cash trapped in inventory, and buying or production issues.
OEE(Overall Equipment Effectiveness)
Overall equipment effectiveness (OEE) measures how effectively manufacturing equipment is used by combining availability, performance, and quality. It helps manufacturers understand whether losses come from downtime, slower-than-planned production, or defects and rework.