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Run npx skillmds@latest add nandanosql/finance-metrics-quickref in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

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This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Finance Metrics Quickref free to use?

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Who published Finance Metrics Quickref?

nandanosql (@nandanosql) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Finance Metrics Quickref by nandanosql

Name: Finance Metrics Quickref
Author: nandanosql

File contents

Purpose

Quick-reference for essential finance and business metrics every PM should understand — covering margins, revenue, burn rate, runway, and financial statement basics for informed product decisions.

Application

Revenue Metrics

Metric	Formula	Why PMs Care
MRR	Sum of monthly recurring revenue	Primary SaaS health metric
ARR	MRR × 12	Annual run rate for planning
Net New MRR	New + Expansion - Contraction - Churn	Shows growth trajectory
ARPU	Total Revenue / # Customers	Revenue per customer trend
ACV	Total contract value / years	Average deal size

Profitability Metrics

Metric	Formula	Benchmark
Gross Margin	(Revenue - COGS) / Revenue	>70% for SaaS
Operating Margin	Operating Income / Revenue	Varies by stage
Net Margin	Net Income / Revenue	Positive for profitable companies
Contribution Margin	(Revenue - Variable Costs) / Revenue	Per-unit profitability

Cash Flow Metrics

Metric	Formula	Why PMs Care
Burn Rate	Monthly cash spend	How fast you're spending
Runway	Cash Balance / Monthly Burn	Months until out of cash
Cash Flow	Cash In - Cash Out	Sustainability indicator
Free Cash Flow	Operating Cash Flow - CapEx	Available for investment

Financial Statement Basics

## The Big 3 Financial Statements

### Income Statement (P&L) — "How much did we make?"
Revenue - COGS = Gross Profit
Gross Profit - OpEx = Operating Income
Operating Income - Taxes/Interest = Net Income

### Balance Sheet — "What do we own and owe?"
Assets = Liabilities + Equity

### Cash Flow Statement — "Where did the cash go?"
Operating + Investing + Financing = Net Cash Change

Key Ratios PMs Should Know

Ratio	Formula	What It Tells You
Rule of 40	Revenue Growth % + Profit Margin %	>40% = healthy SaaS
Magic Number	Net New ARR / Prior Quarter S&M	>0.75 = invest more in S&M
Burn Multiple	Net Burn / Net New ARR	<2x = efficient growth
Quick Ratio	(New MRR + Expansion) / (Contraction + Churn)	>4 = healthy

References

Related Skills

skills/analytics/saas-economics-efficiency-metrics/SKILL.md — SaaS unit economics
skills/analytics/saas-revenue-growth-metrics/SKILL.md — Revenue growth metrics
skills/growth/finance-based-pricing-advisor/SKILL.md — Pricing from finance

Skill type: Component Domain: Analytics & Metrics

---name: finance-metrics-quickrefdescription: Quick-reference guide for essential finance and business metrics every PM should know — margin, burn rate, runway, revenue recognition, and financial statement basics.---## PurposeQuick-reference for **essential finance and business metrics** every PM should understand — covering margins, revenue, burn rate, runway, and financial statement basics for informed product decisions.---## Application### Revenue Metrics| Metric | Formula | Why PMs Care ||--------|---------|-------------|| **MRR** | Sum of monthly recurring revenue | Primary SaaS health metric || **ARR** | MRR × 12 | Annual run rate for planning || **Net New MRR** | New + Expansion - Contraction - Churn | Shows growth trajectory || **ARPU** | Total Revenue / # Customers | Revenue per customer trend || **ACV** | Total contract value / years | Average deal size |### Profitability Metrics| Metric | Formula | Benchmark ||--------|---------|-----------|| **Gross Margin** | (Revenue - COGS) / Revenue | >70% for SaaS || **Operating Margin** | Operating Income / Revenue | Varies by stage || **Net Margin** | Net Income / Revenue | Positive for profitable companies || **Contribution Margin** | (Revenue - Variable Costs) / Revenue | Per-unit profitability |### Cash Flow Metrics| Metric | Formula | Why PMs Care ||--------|---------|-------------|| **Burn Rate** | Monthly cash spend | How fast you're spending || **Runway** | Cash Balance / Monthly Burn | Months until out of cash || **Cash Flow** | Cash In - Cash Out | Sustainability indicator || **Free Cash Flow** | Operating Cash Flow - CapEx | Available for investment |### Financial Statement Basics```markdown## The Big 3 Financial Statements### Income Statement (P&L) — "How much did we make?"Revenue - COGS = Gross ProfitGross Profit - OpEx = Operating IncomeOperating Income - Taxes/Interest = Net Income### Balance Sheet — "What do we own and owe?"Assets = Liabilities + Equity### Cash Flow Statement — "Where did the cash go?"Operating + Investing + Financing = Net Cash Change```### Key Ratios PMs Should Know| Ratio | Formula | What It Tells You ||-------|---------|------------------|| **Rule of 40** | Revenue Growth % + Profit Margin % | >40% = healthy SaaS || **Magic Number** | Net New ARR / Prior Quarter S&M | >0.75 = invest more in S&M || **Burn Multiple** | Net Burn / Net New ARR | <2x = efficient growth || **Quick Ratio** | (New MRR + Expansion) / (Contraction + Churn) | >4 = healthy |---## References### Related Skills- `skills/analytics/saas-economics-efficiency-metrics/SKILL.md` — SaaS unit economics- `skills/analytics/saas-revenue-growth-metrics/SKILL.md` — Revenue growth metrics- `skills/growth/finance-based-pricing-advisor/SKILL.md` — Pricing from finance---**Skill type:** Component**Domain:** Analytics & Metrics

Frequently asked questions

Finance Metrics Quickref