PE-301e · Module 1

Time-Weighted Coverage

3 min read

Not all pipeline is equally likely to close within the current quarter. A deal in Negotiation with a close date in 3 weeks is far more likely to contribute to this quarter's revenue than a deal in Discovery with a close date at quarter-end. Time-weighted coverage applies a probability weight based on the deal's stage and remaining time, producing a more accurate estimate of how much pipeline will actually convert within the period.

Time-Weighted Coverage Calculation

Deal    Value     Stage         Close Date    Days Left   Weight   Weighted Value
──────  ────────  ───────────   ──────────    ─────────   ──────   ─────────────
D-101   $120K     Negotiation   Mar 15        22          0.85     $102,000
D-102   $85K      Proposal      Mar 28        35          0.55     $46,750
D-103   $200K     Discovery     Mar 31        38          0.20     $40,000
D-104   $65K      Negotiation   Mar 10        17          0.90     $58,500
D-105   $150K     Qualified     Mar 31        38          0.08     $12,000

Raw Pipeline:      $620,000
Weighted Pipeline:  $259,250
Revenue Target:     $300,000

Raw Coverage:       2.07x  (looks close to sufficient)
Weighted Coverage:  0.86x  (reveals the gap)

Action: $40K+ in additional near-term pipeline needed.