New to this? What normalised EBITDA, add-backs and the days mean
You're tracing how much of your accounting profit actually reaches the bank. Every money field is in Australian dollars. Plain English below.
- Enter your revenue, normalised EBITDA and gross margin %, plus how fast you're growing.
- Set your debtor, inventory and creditor days, then capex, depreciation, tax and interest.
- Read the bridge: how much of your EBITDA survives working capital, capex, tax and financing to become free cash flow.
- Normalised EBITDA
- Your annual operating profit after add-backs: one-off or owner-specific costs stripped out so the number reflects true, ongoing trading profit.
- Add-backs
- Costs added back to profit because they won't carry on for a new owner: one-offs, an above-market owner salary, or private expenses run through the business.
- Free cash flow
- The cash actually left after the business has funded its working capital, capex and tax. It's what reaches the bank, and what a buyer really pays for.
- Debtor days
- How long your customers take to pay you. Higher = more of your cash is tied up waiting, so less EBITDA turns into cash.
- Inventory days
- How long stock sits before you sell it. Higher = more cash locked up on the shelf.
- Creditor days
- How long you take to pay your suppliers. Higher = suppliers are funding you, which frees up cash. This is the one where more is better.
Your numbers
The business
Working capital
Below the EBITDA line
What actually reaches the bank
Free cash flow, annual
≈ 42% of your EBITDA becomes cash. A buyer values the cash, not the accounting figure above it.
The bridge from EBITDA to cash
Working capital tying up roughly A$1.32M of cash at these terms.
Free up the cash →A Commercial Assessment finds where cash is trapped, and what it would take to release it.
Illustrative and simplified. It approximates unlevered-to-owner free cash flow: receivables scale with revenue, inventory and payables with cost of goods, working capital rises roughly in line with growth, and cash tax is estimated on profit after depreciation. It ignores timing, one-offs, tax losses carried forward, and lumpy capex, so treat it as a directional read rather than a forecast. Not financial or accounting advice.
Profit you can't bank isn't really profit yet.
This bridge shows where EBITDA leaks before it becomes cash. A Commercial Assessment finds how much is recoverable on your actual numbers: two to four weeks, fixed fee, a clear read of where cash is trapped and what to do about it.
Start with a Commercial Assessment →Not ready to talk? Find your constraint in 60 seconds →