RuncheyResearch
All Concepts
Derived SignalEmerges from analysis

Customer Concentration

Is revenue dependent on a small number of customers?

Seen in MOHSeen in PYPL

Assessment Spectrum

DIVERSIFIED
MODERATE
HIGH
CRITICAL
BestWorst
About Derived Signals
Derived signals emerge from analysis synthesis when company-specific patterns warrant additional categorization beyond the core 11 signals. They capture nuances that the standard framework surfaces through rigorous multi-model debate.

Assessment Labels

Every analysis assigns one of 4 categorical labels to this signal. Labels represent a spectrum from best to worst assessment.

DIVERSIFIEDBest outcome

No customer represents more than 10% of revenue. Loss of any single customer wouldn't materially impact the business.

MODERATEPositive outcome

Some customer concentration exists but is manageable. Top customers represent 10-25% of revenue individually.

HIGHConcerning outcome

Significant dependency on a small number of customers. Top customers represent 25-50% of revenue. Loss would materially impair results.

CRITICALWorst outcome

Revenue is dominated by one or few customers representing >50%. Business viability depends on maintaining these relationships.

What This Signal Captures

Top customer revenue shareContract renewal riskMonopsonist buyer dynamicsGeographic concentration

Emerges From

This derived signal emerges from analysis synthesis within these lenses when company-specific patterns warrant the additional categorization.

Gravy Gauge

Is this revenue durable, or does it depend on conditions that could change?

How to Interpret

Customer concentration creates dependency risk where the loss of key relationships materially impacts results. In government-facing businesses, state agencies often function as monopsonist buyers with outsized influence.

All ConceptsLearn about Evidence Levels