Income Statement
Total Recurring Contracts
Metric Name
Total Recurring Contracts
Metric Family
Income Statement
Metric Definition
Total number of active contracts that generate recurring revenue for the business.
Formula
Total Recurring Contracts = Number of Active Subscription Contracts at a Given Time
Application
Total recurring contracts are directly related to recurring revenue and can aid in predicting future earnings. Changes in total recurring contracts can help track recurring revenue. Understanding this metric can help companies plan for future business initiatives. This metric also highlights the performance of a sales team.