In my previous post on unit economics, I’ve emphasized the importance of the LTV/CAC ratio as a key metric in growth strategy. However, it’s time to address its limitations: LTV/CAC can mislead by oversimplifying a company’s financial health. A more comprehensive and nuanced complement is to focus on unit contribution margin (net of CAC). This approach considers both direct costs and the broader operational context. Together, these two metrics offer a clearer insight into real profitability and financial stability of a company.