Metrics · Channel · Finance · Monthly · ratio

Pipeline Coverage Ratio

The ratio of total open pipeline value to the remaining revenue target for the period.

Formula

Total open pipeline value / Remaining revenue target

How to measure

Sum the value of all open opportunities expected to close in the period and divide by the revenue quota still needed.

Why track it

A coverage ratio below roughly 3x is a common early warning that a sales team will miss its target for the period.

Example

A team with a $1 million remaining quota and $2.5 million in open pipeline has a 2.5x coverage ratio, below the typical 3x benchmark.

Pipeline Coverage Ratio — Growth metric · Cofounderbase