CFO Paradigm · Example company: Cawan's Shoes
People, Tech & Ops

Research & Development

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What it means

Investment in new products, materials, and processes.

Why it matters

R&D-to-Revenue is a lead indicator of future revenue.

How to calculate — with Cawan's Shoes

Cawan's spends $25M / $500M = 5% of revenue on R&D.

What's at stake if you ignore this

Underspend and competitors' next-gen product eats yours.