Home

Financials

// 02 — Financials

KNOW YOUR NUMBERS. RUN A STRONGER BUSINESS.

Use clear financial reporting to understand margins, cash flow, customer retention, and the mix of work that supports your business.

YOUR EBITDA CALCULATOR
Educational estimate only. Review your financials and expense classifications with a qualified accountant.
$0
$0 $10M
$0
60%
% of Revenue — typical fire protection: 55–65%
$0
22%
% of Revenue — typical: 15–25%
$0
$0 $500K
$0
$0 $300K
$0
$0 $200K
$0
$0 $300K
Calculation Waterfall
Total Revenue —
− COGS —
= Gross Profit —
− Operating Expenses —
+ Add-Backs —
+ D&A —
+ Interest —
+ Taxes —
Estimated Adjusted EBITDA
—
— margin

Educational estimate only. Earnings depend on verified financials and accounting classifications. Avoid adding back expenses already excluded from operating expenses. Review the calculation with your CPA.

// Revenue discipline

BREAK OUT SERVICE AND INSPECTION — INSIDE EVERY DISCIPLINE

Separate inspection, service and repair, and construction within alarm, sprinkler, suppression, and extinguisher work. Review revenue and gross margin together. Consistent job coding helps you spot changes in your customer base and understand where the business earns its profit.

Monthly Watch List

MONTHLY METRICS

  • Gross revenue vs. prior month and prior year
  • Accounts receivable aging — anything over 60 days is a problem
  • Tech billable hours vs. available hours
  • New inspection contracts signed
  • Cash on hand and credit line availability
  • Job cost variances on active projects
Quarterly Review

QUARTERLY METRICS

  • EBITDA margin % (target 15–25% for well-run shops)
  • Revenue broken out by discipline AND by type (inspection / service / construction) — every month, not just at year-end
  • Customer concentration — no one customer >15% of revenue
  • Equipment and vehicle utilization
  • Employee turnover and cost per hire
  • Revenue per technician
Annual Review

ANNUAL METRICS

  • Clean P&L and balance sheet — auditable by a buyer
  • Recurring revenue % of total — target 50%+
  • EBITDA trend over 3 years — buyers want trajectory
  • Owner dependency — can the business run without you?
  • Contract renewals and churn rate
  • Review revenue quality, margin, customer retention, and operating capacity each month.