How to interpret
- < 0.5: sales engine is broken — fix before adding more reps.
- 0.5–0.75: growth costs more than $1.30 per $1 ARR — slow it.
- 0.75–1.0: proceed with caution; CAC payback > 12 months.
- > 1.0: healthy — invest more in S&M.
- > 1.5: exceptional — you’re likely under-investing in growth.
Pair this with CAC / LTV and Rule of 40 to triangulate sales efficiency.