Revenue concentration, and your risk zone

List every meaningful revenue source and its dollar revenue for the year. Two readings come back: how spread out the whole book is, and how exposed you are to the single biggest source.

Revenue sourceLast 12 monthsShare

Concentration index (HHI)
0
Add your sources
Largest single source
0%
 
Total revenue
$0
0 sources

Two different readings, two different sources. The index runs 0 to 10,000, where one source carrying everything scores 10,000. Its bands follow the 2023 Merger Guidelines as published by the DOJ: under 1,000 diversified, 1,000 to 1,800 moderately concentrated, above 1,800 highly concentrated. The single-largest-source zones, healthy at or under 10 percent, caution above 10 and up to 25, danger above 25, are RocketLevel working thresholds, the kind of line a buyer applies when pricing risk, not a figure from a published report. A book can sit inside the index bands and still fail on the largest single source, which is the reading that usually bites first.