How to Calculate a Sales Cat Ratio

The speaker discusses the challenges of calculating the 'cat ratio', which is the fully loaded cost of fully ramped reps divided by the ARR generated by those reps./nThe speaker expresses skepticism about the practicality of the cat ratio as a metric./nTerminal sales productivity is highlighted as a highly leveraged driver for the cat ratio in the sales model./nThe difference between sales cat ratio and cat ratio is explained, with sales cat ratio being useful for historical analysis but not for benchmarking./nThe speaker suggests an alternative metric, the sales to marketing expense ratio, for evaluating the effectiveness of sales and marketing efforts.