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The Diagnostic

Click on each of the eight qualities below to explore important dimensions of a business.

Dimension 01

Revenue Quality

Where does this business sit on the progression from transactional to contractual recurring revenue? Measures how contractual, durable, and predictable the revenue stream is over time.

12345Revenue QualityCustomer RetentionCompetitive MoatOperating LeverageCapital EfficiencyScalabilityPricing PowerGrowth Sustainability

Case overlays

Click the card to show or hide on the chart. Click a case outline on the spider chart to view details.

ORCA (Healthcare Services)
Navia (Benefits Third-Party Administrator)
Paula's Choice (D2C Consumer Brand)
TDR (Waste Management)
5.11 Tactical (Tactical Apparel)
Conservice (Utility Billing)
PLS (Power Line Services) (Infrastructure Software)
Fireclay Tile (Manufacturing and D2C)

Magnitude explanations by score

Case Index

CaseBusiness TypeKey Concept IllustratedDiagnostic ProfileActions
ORCAHealthcare ServicesFounder dependency and operating leverageWeak scalability and variable leverage
NaviaBenefits Third-Party AdministratorChannel dynamics and revenue qualityModerate across dimensions
Paula's ChoiceD2C Consumer BrandLifetime value and retentionStrong scalability and good retention
TDRWaste ManagementRegulatory moats and operating leverageExcellent moat and leverage
5.11 TacticalTactical ApparelCash-to-Cash Cycle and Growth KillsWeak capital efficiency
ConserviceUtility BillingFloat economics and switching costsExcellent retention and efficiency
PLS (Power Line Services)Infrastructure SoftwareMonopoly pricing and stickinessExcellent across dimensions
Fireclay TileManufacturing and D2CValue chain redesign and stakeholder modelModerate with strong scalability