An Introduction to Deferred Revenue

Deferred Revenue is a Balance Sheet account that is created when a customer pays upfront. This financial metric can be a useful tool is identifying stellar companies.

BY DOUG SCHERRER

The Efficient Alpha Capital Deferred Revenue Indexes identifies companies that have Deferred Revenue on their Balance Sheets, an account created when a customer pays upfront for a product or service. Not only do these upfront payments obviously help to enhance a company’s cash flow profile, but they also can be viewed as a “signal” of a company’s superior competitive positioning and differentiation.

Deferred Revenue Whitepaper – Efficient Alpha Capital – June 2020

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