Draft reference — content review pending
Largest Client Revenue Concentration
The percentage of eligible revenue generated by the largest client or client group during the selected reporting period.
Business question
What share of eligible revenue comes from the largest client or defined client group?
Formula
Largest client revenue concentration = revenue from the largest client or client group ÷ total eligible revenue × 100.
Calculation notes
Define client-grouping rules, including parent and subsidiary treatment, reporting period, revenue scope, currency treatment, and whether pass-through or one-off revenue is included.
Edge-case guidance
If total eligible revenue is zero, the measure is not meaningful. Document shared-account ownership, acquisitions, client mergers, projects spanning periods, and whether a group is ranked before or after exclusions.
Required data
| Input | Type | Status | Available source hints |
|---|---|---|---|
| Largest client or client-group revenueEligible revenue attributed to the largest client or defined client group under the agreed grouping policy. | Currency | Required | Accounting software · CRM · Excel · Google Sheets |
| Total eligible revenueTotal revenue included under the same period, scope, currency, and recognition rules. | Currency | Required | Accounting software · CRM · Excel · Google Sheets |
Interpretation
Use the measure as a dependency and resilience indicator. A high concentration may be strategically acceptable in some models, but it can increase exposure to client loss, renegotiation, or delayed payment.
Caution
Higher concentration is not automatically unacceptable, and lower concentration is not automatically healthier if it comes from unprofitable or poorly aligned work. Use the measure to prompt risk review rather than a universal judgment.
Implementation recommendation
Agree on client-grouping and revenue-scope rules with finance and commercial owners, then review concentration with contract renewal, payment, margin, and pipeline context.
Target guidance
Set the first target from comparable historical performance for largest client revenue concentration, then adjust it for the service model, strategy, delivery capacity, seasonality, data quality, and client commitments. Review the direction with the accountable owner and consider this trade-off: reducing concentration may diversify risk but can also dilute focus, margin, or strategic account investment.