Startup CFO Metrics: 12 Numbers Every Founder Should Track

1. Net burn (Net Burn)

Formula: cash paid out in the month − cash received in the month.

Example: OMR 32,000 out − OMR 20,000 in = OMR 12,000 net burn a month.

Track the three-month average so one unusual month does not mislead you. Gross burn (all cash out) shows your cost base; net burn drives runway.

2. Runway

Formula: cash available ÷ net burn per month.

Example: OMR 180,000 ÷ OMR 12,000 = 15 months.

What to aim for: start raising with about 9 months left, because a round usually takes longer than planned. Below that, cut spend that has no measured return. Use the free cash runway calculator to test scenarios.

3. 13-week cash flow forecast

A week-by-week view of cash in, cash out and the closing bank balance for the next quarter, built from real invoice dates, payroll, rent, loan repayments and tax dates such as VAT returns in Oman.

Monthly reports tell you what happened; the 13-week forecast tells you which week cash falls below your safety buffer, early enough to act. Update it every week.

4. Gross margin (Gross Margin)

Formula: (revenue − direct cost of sales) ÷ revenue.

Example: (OMR 24,000 − OMR 8,400) ÷ OMR 24,000 = 65%.

Every other unit-economics number depends on it: a low margin makes each customer, and each round of growth, more expensive.

5. Customer acquisition cost (CAC)

Formula: sales and marketing spend in the period ÷ new customers won in the same period.

Example: OMR 6,000 ÷ 40 new customers = OMR 150 per customer.

Include the sales and marketing team's cost for the full picture, and track CAC by channel: a blended average hides the channel that loses money.

6. Customer lifetime value (LTV)

Formula: average revenue per customer per month × gross margin ÷ monthly churn.

Example: OMR 50 × 65% ÷ 2% = OMR 1,625.

LTV is built on gross profit, not revenue and not net profit. Using revenue overstates it; using net profit deducts marketing twice.

7. LTV:CAC ratio and CAC payback

LTV:CAC = LTV ÷ CAC. Example: OMR 1,625 ÷ OMR 150 = 10.8x.

CAC payback = CAC ÷ (monthly revenue per customer × gross margin). Example: OMR 150 ÷ OMR 32.5 = 4.6 months.

A common rule of thumb is LTV:CAC of 3x or more and payback within 12 months for smaller customers (longer is normal when selling to large companies). Read the two together: a high ratio with a 30-month payback can still run you out of cash.

8. Churn and net dollar retention (NDR)

Customer churn = customers lost ÷ customers at the start of the period. Example: 4 ÷ 200 = 2% a month. Track revenue churn separately: losing many small customers is different from losing one large one.

NDR = (recurring revenue from existing customers a year ago + expansion − contraction − churn) ÷ that starting revenue. Example: (OMR 20,000 + 3,000 − 500 − 1,000) ÷ 20,000 = 107.5%.

Above 100%, the existing base grows on its own; above 110% is strong. It is a strong sign of product-market fit, not proof of it.

9. Burn multiple (Burn Multiple)

Formula: net burn ÷ net new annual recurring revenue (ARR) in the same period.

Example: OMR 36,000 net burn in a quarter ÷ OMR 30,000 net new ARR = 1.2x.

David Sacks, who introduced the measure in 2020, rates under 1x as amazing, 1 to 1.5x great, 1.5 to 2x suspect and above 2x bad, with more tolerance in the first year of sales. It only works for recurring-revenue businesses.

10. Working capital and the cash conversion cycle (CCC)

Formula: days inventory outstanding (DIO) + days sales outstanding (DSO) − days payables outstanding (DPO). A service business with no stock uses DSO − DPO.

Example: 60 days to collect − 30 days to pay suppliers = 30 days of revenue funded from your own cash.

In Oman, the bigger lever is usually DSO: government bodies and large companies often pay late. Invoice on time, chase from day one and agree deposits or milestone payments. Stretching suppliers too far damages terms you will need later.

11. Cost structure and break-even

Split costs into fixed (salaries, rent, core subscriptions), variable (direct cost of service, sales commissions, payment fees) and discretionary (most marketing, which management decides rather than sales driving it).

Break-even revenue = fixed costs ÷ contribution margin ratio. Example: OMR 10,000 ÷ 65% = OMR 15,385 a month. With OMR 24,000 of revenue, this business covers break-even 1.56 times.

12. Cap table, valuation and dilution

Post-money valuation = pre-money valuation + new investment, and the investor's share = investment ÷ post-money.

Example: OMR 200,000 at OMR 800,000 pre-money gives OMR 1,000,000 post-money and 20% to the investor. If the round also requires a 10% option pool counted before the money comes in, the founders end at 70%, not 80%.

SAFEs and convertible notes both convert into shares at the next priced round, but a convertible note is debt (interest and a maturity date) and a SAFE is not. Put every instrument in the cap table before signing the next one. In an Omani LLC, employee options need a structure your lawyer designs, such as phantom shares.

Your monthly CFO dashboard

Review the twelve numbers on the same working day every month:

• Cash: net burn, runway and the 13-week forecast
• Unit economics: gross margin, CAC, LTV, LTV:CAC, payback and churn
• Efficiency: burn multiple, cash conversion cycle and break-even coverage
• Ownership: the cap table before every new instrument

Download the free CFO Metrics Scorecard: enter last month's figures and each metric turns green, amber or red with what to do next. Or book a free discovery call and we will build it on your real numbers.