unit-economics

To analyze unit economics, you calculate LTV/CAC ratios and assess gross margins by breaking down recurring versus one-time revenue. This process requires access to company financials and disclosure context to evaluate customer acquisition spending against long-term value.

Calculating LTV and CAC involves assessing customer lifetime value against acquisition costs to determine if spending is justified by long-term value. This Skill computes these metrics by analyzing revenue composition, gross margins, and cohort retention rates from company financial data.

Cohort analysis applies to financial assessments for both subscription-based and product-based companies. You can use it to track retention and churn over time, diagnosing revenue quality and business model sustainability across different revenue models.

Assessing revenue quality requires access to company financials, disclosure context, and illiquid asset data for comprehensive evaluation. You use these inputs to perform margin analysis by segment, break down revenue types, and calculate cohort economics.

The best way to diagnose revenue concentration is to break down revenue by type, separating recurring from one-time revenue streams. This analysis identifies revenue concentrations and evaluates overall business model sustainability by combining these findings with cohort retention tracking.