What Are the Benefits of a Low Customer Concentration Ratio?
A low customer concentration ratio offers several benefits:
1. Reduced Risk: Lower dependency on individual customers reduces revenue volatility. 2. Stronger Negotiation Position: Less concentrated revenue streams can enhance negotiation power. 3. Investor Confidence: A diversified customer base is more attractive to investors and stakeholders. 4. Financial Stability: Greater financial stability and predictability in revenue streams.