Client dependence
The share of revenue concentrated on the largest clients, read together with each client's contractual deadline and renewal terms. The two pieces of information are read together or not at all.
What it changes for the executive
A forty per cent concentration on three clients says nothing as long as one does not know where the contracts stand: carried by mandates renewed for three years, it describes a solid company; carried by contracts expiring within the year, it describes a company whose next year is half decided in two negotiations. The threshold that matters is where the margin brought by the first client exceeds the company's profit, and it is calculated in your accounts, not in an industry average.
Example
A client weighing sixteen per cent of revenue does not remove sixteen per cent of turnover when it leaves; it removes the contribution margin it carries. In a company with a high share of fixed costs, that departure can turn a profitable year into a loss.
A term that is missing?
Describe the situation in a few lines; the reply is personal.