Sample report
A monthly financial review for a growing service business.
This illustrative example shows how Arbor reports on profitability, labor, and cash for a fictional facility-services company.
No email address required. Every figure, customer, and comment below is fictional and shown only to demonstrate the format of an Arbor Monthly Financial Review.
Illustrative company profile
Summit Facility Services
- Approximately $8 million annual revenue
- Multiple commercial customers
- Several service categories
- Labor-intensive operations
- Approximately 60–80 employees
- Multiple operating territories
Executive financial summary
Where the month landed.
| Current month | Budget | Variance | Prior year | |
|---|---|---|---|---|
| Revenue | $682,400 | $665,000 | +$17,400 | $631,900 |
| Gross profit | $233,400 | $226,100 | +$7,300 | $212,300 |
| Gross margin % | 34.2% | 34.0% | +0.2 pts | 33.6% |
| Operating profit | $71,100 | $68,400 | +$2,700 | $63,500 |
| Cash balance | $412,000 | $430,000 | -$18,000 | $396,500 |
Management observations
- Revenue finished 2.6% ahead of budget, driven by additional field-service work at two existing customers.
- Gross margin held at 34.2% despite higher overtime, helped by stronger field-services mix.
- Cash finished below budget as two large customer payments moved into the following month.
Revenue & margin performance
What is driving revenue and margin.
Revenue trend (12 months)
Gross margin trend
| Service line | Revenue | Gross profit | Gross margin % | Margin change |
|---|---|---|---|---|
| Facility Maintenance | $318,600 | $110,900 | 34.8% | +0.6 pts |
| Janitorial Services | $232,700 | $74,100 | 31.8% | -0.9 pts |
| Field Services | $131,100 | $48,400 | 36.9% | +1.4 pts |
Commentary
- Facility maintenance remains the largest service line and the most stable margin contributor.
- Janitorial margin slipped slightly on overtime coverage at two sites during a staffing gap.
- Field services grew fastest and carries the strongest margin, supporting a pricing review across the segment.
Client profitability
Similar revenue, very different profit.
| Customer | Revenue | Direct labor | Other direct costs | Gross profit | Gross margin % |
|---|---|---|---|---|---|
| Meridian Property Group | $96,400 | $52,100 | $9,800 | $34,500 | 35.8% |
| Cascade Retail Partners | $94,900 | $68,300 | $12,400 | $14,200 | 15.0% |
| Northgate Medical Offices | $71,200 | $41,600 | $6,900 | $22,700 | 31.9% |
| Lakeside Industrial Park | $58,300 | $30,700 | $5,100 | $22,500 | 38.6% |
| Harborview Campus | $44,800 | $31,900 | $4,600 | $8,300 | 18.5% |
Management observations
- Meridian and Cascade generate nearly identical revenue, but Meridian produces roughly 2.4x the gross profit.
- Cascade's margin reflects higher direct labor hours per site than the original pricing assumed.
- Two of the five largest customers sit below the company's 25% margin threshold and warrant a pricing conversation.
Labor & operating KPIs
How labor is affecting profitability.
Labor cost % of revenue
48.6%
Prior month 47.4%
Revenue per employee
$9,750
70 employees
Gross profit per employee
$3,334
Prior month $3,180
Overtime % of labor
7.9%
Target under 6%
Headcount
70
+3 vs. prior month
Management observations
- Labor cost rose 1.2 points versus the prior month while revenue grew 2.4%, concentrated in one operating team.
- Overtime remains above the 6% internal target and is the primary margin risk this quarter.
13-week cash forecast
What cash looks like ahead.
Ending cash by week ($000s)
IllustrativeWeeks 6 through 8 fall below the company's $220K minimum cash target.
| 13-week total | Tightest week (W7) | Final week (W13) | |
|---|---|---|---|
| Beginning cash | $412,000 | $258,000 | $352,000 |
| Customer collections | $1,932,000 | $668,000 | $742,000 |
| Payroll | -$1,486,000 | -$512,000 | -$524,000 |
| Operating expenses | -$381,000 | -$128,000 | -$134,000 |
| Other major cash uses | -$89,000 | -$100,000 | -$48,000 |
| Ending cash | $388,000 | $186,000 | $388,000 |
Management observations
- Cash tightens in weeks 6 through 8 as two payroll cycles and an insurance renewal land before a large customer collection.
Budget vs. actual & forecast
Are we on track for the year?
| Actual YTD | Budget YTD | Variance | Updated full-year forecast | |
|---|---|---|---|---|
| Revenue | $5,412,000 | $5,310,000 | +$102,000 | $8,140,000 |
| Gross profit | $1,846,000 | $1,805,000 | +$41,000 | $2,775,000 |
| Operating expenses | $1,281,000 | $1,246,000 | -$35,000 | $1,930,000 |
| Operating profit | $565,000 | $559,000 | +$6,000 | $845,000 |
Variance explanations
- Revenue is $102K ahead of plan on added field-service scope at existing customers.
- Operating expenses are $35K over plan, mostly recruiting and vehicle maintenance.
- Full-year forecast is raised to $8.14M revenue with operating profit slightly ahead of budget.
Management actions
What management should focus on next.
- 01
Review pricing on two low-margin customer accounts.
- 02
Reduce overtime concentration in one operating team.
- 03
Delay a planned hire by four weeks based on projected cash requirements.
These recommendations are fictional examples. The purpose of the sample is to demonstrate how Arbor connects financial information to the decisions management needs to make.
Reporting should lead to a decision.
Arbor does not build reports simply to produce more spreadsheets. The goal is to identify the handful of financial measures that explain what is happening in the business, what may happen next, and where management should focus.
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