Customer Concentration
One customer can be the whole thesis. Pulls the concentration disclosure, contract terms and renewal dates, watches for language changes about a major relationship, and asks what the model looks like if the top name leaves.
What this template answers
Each item below becomes a heading in the AI response.
- What share of revenue comes from the largest customer, and from the top few combined — in the company's own disclosed numbers?
- Is the customer named, or only described? Has that changed from the prior filing?
- How has the concentration moved over the last three years — rising, falling, or newly disclosed?
- What are the contract terms: length, renewal date, termination-for-convenience rights, minimum volumes, exclusivity?
- Does the same concentration appear in accounts receivable, which would show whether one customer also carries the collection risk?
- Has the language about this relationship changed — from 'strategic partner' to 'a customer', from named to unnamed, from multi-year to nothing?
- Is the relationship reciprocal in any way — does the customer also supply, invest in, or compete with the company?
- If the top customer leaves at renewal, what happens to revenue, gross margin, fixed-cost absorption and covenant headroom?
Categories
- Finance & Investing
- Business & Strategy
Tags
- customer-concentration
- contracts
- revenue-risk
- receivables
- disclosure
Creator
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