What are the Types of Credit? The three main types of credit are revolving credit, installment, and open credit. Credit enables people to purchase goods or services using borrowed money. The lender expects to receive the payment back with extra money (called interest) after a certain amount of time. Revolving Credit A line of credit…
What is a Currency Crisis? A currency crisis can be broadly defined as any situation in the foreign exchange markets where a currency suddenly and/or unexpectedly loses substantial value relative to other currencies. In most cases, a currency crisis is not an isolated event and usually follows a financial or socio-political crisis. Although modern currency…
What is Customer Renewal Rate? Customer renewal rate, also known as customer retention rate or renewal rate, is the percentage rate at which a company’s customers extend their relationships with the company (such as a subscription or membership). It is an important indicator of a company’s growth prospects. This metric is a critical measure of…
What Is Pay-Per-Click (PPC)? Pay-per-click (PPC) is a digital advertising model where advertisers pay a publisher — typically a search engine or social media platform — every time a user clicks their ad. PPC is also called cost-per-click (CPC) advertising. This model allows businesses to “buy” visits to their website rather than earning them organically…
What is Customer Engagement Score (CES)? Customer engagement score (CES), also known as engagement score, is a single quantitative metric that evaluates the engagement of customers and free trial prospects. CES is one of the key metrics for online businesses, particularly companies operating on the software-as-a-service (SaaS) business model. Unlike “offline” businesses, their online counterparts…
What is Tangible Net Worth? Tangible net worth is an estimate of the net worth of an entity that excludes all intangible assets such as trademarks, patents, and intellectual property, etc. The formula for calculating total net worth is as follows: Tangible net worth is used to assess a company’s actual physical net…
What are Restrictive Covenants? Restrictive or negative covenants are a type of non-financial covenants that limit the borrower from engaging in a certain activity or keep it from exceeding a predetermined limit. They are called “negative” debt covenants because they impose restrictions or create certain boundaries for the borrower that it is not supposed to…
What is the Engagement Rate? The engagement rate is a metric used to gauge the level of engagement generated from created content or a brand campaign. In other words, the engagement rate refers to the level of interaction with followers that is generated from content created by a user. Formula for Engagement Rate Where: Total…
What is a Recession? Recession is a term used to signify a slowdown in general economic activity. In macroeconomics, recessions are officially recognized after two consecutive quarters of negative GDP growth rates. In the U.S., they are declared by a committee of experts at the National Bureau of Economic Research (NBER). Recessions are considered a…
