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Operating Profit % - Improvement
Operating Profit % - Improvement

EBITDA

Steven Briginshaw avatar
Written by Steven Briginshaw
Updated over a week ago

Potential Profit & Cash Formula: Additional operating profit % x current revenue

I've put a side by side view of the future numbers (left screen) and current numbers (right screen) to show where the figures come from. Both of these dates are set to June 2023 in this example (red button). The Operating Profit %/EBITDA current figure is -4.73%

If I make a 1% improvement to this figure from -4.73% to -3.73% then I increase my potential profit and cash by £4,667. Which is 1% of the current revenue figure £466,677

EBITDA and Revenue have a relationship where if I improve my EBITDA by 1% and my revenue by £100,000, my potential profit and cash improvement for my EBITDA goes up from £4,667 to £5,667 which is the 1% of the £100,000 yearly target I chose. An increase from £466,677 to £566,677 in revenue.

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