Customer concentration ratio
The share of revenue coming from a handful of customers — a key IT services metric, since concentration gives steady revenue but creates dependence.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
- Barriers to entryWhatever makes it hard, slow or expensive for a new competitor to enter an industry — and therefore what allows the companies already in it to keep earning above-normal profits.
- Minimum Alternate TaxA floor tax on a company's book profits under Section 115JB, payable when it exceeds tax computed the normal way — which catches corporate investors receiving Category III AIF distributions.
- Porter's Five ForcesMichael Porter's framework for judging how much profit an industry can sustain, through five competitive pressures: rivalry, new entrants, substitutes, and the bargaining power of suppliers and of buyers.
Where this is taught
Free preparation for NISM Series XV← All terms