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Table Table 1 Growth that compounds

One LTV:CAC ratio, three cash paths

The ratio is identical. The funding risk and the evidence required are not.

Illustrative pathForecast LTVCACLTV:CACWhat the ratio hides
Fast recovery, early churn3001003.0xMost value arrives before a short life ends
Slow recovery, durable expansion3001003.0xCash is tied up longer, but the relationship may be stronger
Mixed cohort, concentrated expansion3001003.0xA few expansions carry the average

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Reference & Evidence

Source: Author's illustrative worksheet. The values are constructed to show why a ratio cannot stand in for timing.