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.