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LTV, CAC, and Healthy Ratios

Medium
Behavioral & LeadershipCACunit economicscustomer lifetime value

Problem

How do you calculate Customer Lifetime Value (LTV) and Customer Acquisition Cost (CAC), and what is a healthy ratio for a scaling SaaS company?

Practicing as: Financial Analyst interview at Entrata

Hi, I'll play your Entrata interviewer for the Financial Analyst role. Candidates describe these interviews as mostly positive and moderately difficult, so expect me to be friendly and conversational. Take your time with the question above and answer like we're in the room.

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