Identifies how much of a company’s revenue is concentrated in its most valuable customers to highlight dependence on a small customer base and potential risks if these customers are lost.
Example: The revenue share of the top 20% is 80% for a company with $1M revenue from 10k customers sorted from most revenue to least where the top 2k customers contributed $800k total revenue. This indicates high concentration.
Leave A Comment
You must be logged in to post a comment.