Customer concentration
The share of a company’s revenue attributable to its largest customers. The risk depends on contracts, customer quality, profitability and the difficulty of replacing lost business, not a universal percentage threshold.
Customer concentration in round numbers
Hypothetical: revenue from the top customer is 34% of total revenue for the same annual period and reporting scope. The percentage describes concentration; it does not by itself establish whether the exposure is acceptable or requires repricing.
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| Measure | Calculation |
|---|---|
| Top-customer share | Revenue from top customer ÷ total revenue = 34% |
Terms Related to Customer concentration
Kill issue · Due diligence · Key-person risk · Diligence workstreams · All of the glossary