Cost Per Gross Addition - CPGA

AAA

DEFINITION of 'Cost Per Gross Addition - CPGA'

A ratio used to quantify the costs of acquiring one new customer to a business. Often, the CPGA ratio is used by companies that offer subscription services to clients, such as wireless communication companies and satellite radio companies.

Cost Per Gross Addition (CPGA)

INVESTOPEDIA EXPLAINS 'Cost Per Gross Addition - CPGA'

These companies often will compare their own CPGA values with competing companies to compare who is better able to attract new customers at a lower cost.

Investors will look to compare a company's CPGA over a reporting period, either quarter on quarter, or year over year. Specifically investors will be looking to see if the number is decreasing over these periods. If it is, this could be a sign that the company attracting more customers for the same level of cost or it may show that the company is reducing its costs while attracting the same amount of customers.

RELATED TERMS
  1. Year Over Year - YOY

    A method of evaluating two or more measured events to compare ...
  2. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  3. Financial Accounting Standards ...

    A seven-member independent board consisting of accounting professionals ...
  4. Managerial Accounting

    The process of identifying, measuring, analyzing, interpreting, ...
  5. Property, Plant And Equipment - ...

    A company asset that is vital to business operations but cannot ...
  6. Revenue Per User - RPU

    A ratio used to express the profitability of a company on a per-user ...
Related Articles
  1. Evaluating A Company's Management
    Active Trading Fundamentals

    Evaluating A Company's Management

  2. Advanced Financial Statement Analysis
    Options & Futures

    Advanced Financial Statement Analysis

  3. The Basics of Forming A Limited Liability ...
    Investing Basics

    The Basics of Forming A Limited Liability ...

  4. Key Steps To Building A Great Financial ...
    Professionals

    Key Steps To Building A Great Financial ...

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center