Video Walkthrough
Key Metrics — May 2026
Revenue
$29,494
Flat vs. April · on the 4-mo avg
Net Income
$4,553
↑ $5,660 — back in the black
Cash in Bank
$18,126
↓ $5,205 from April
Profit Quality
1.46
Cash running ahead of earnings
"May was steady and profitable — now the job is rebuilding margin before owner pay outgrows the business."
Three Power Insights
Insight 01
February proved your margin can be twice this high
May's gross margin was 38.6%. February hit 68.6% on the same products — worth about $3,370 more profit a month at today's revenue. That gap is the single biggest lever in the business.
Action: Look at what sold in February and at what price. Find the high-margin mix and do more of it.
Insight 02
Owner pay is eating 64¢ of every profit dollar
Gross profit was $11,376 in May; owner wages took $7,273 of it before any bill was paid. You were still profitable — but there's little room for a bad month. At 38% margin, revenue needs to reach roughly $47,000 to bring that ratio comfortable.
Action: Grow revenue or margin — one has to move. Track the gap monthly.
Insight 03
New equipment is in — now grow into it
You put $4,572 into machinery in May, a good sign. But cash has fallen four months straight ($40,179 → $18,126). The balance sheet is still strong (current ratio 4.48), so this is a watch, not an alarm.
Action: Watch June sales closely — the new capacity should start showing up in output.
P&L Summary
|
Feb |
Mar |
Apr |
May |
4-Mo Avg |
| Revenue | $42,704 | $17,402 | $29,730 | $29,494 | $29,832 |
| COGS | $13,396 | $16,519 | $18,668 | $18,118 | $16,675 |
| Gross Profit |
$29,308 | $883 | $11,062 |
$11,376 | $13,157 |
| Gross Margin % |
68.6% | 5.1% | 37.2% |
38.6% | 37.4% |
| Total Operating Exp. |
$15,729 | $15,013 | $12,169 |
$6,823 | $12,433 |
| Net Income |
$13,579 |
(–$14,131) |
(–$1,107) |
$4,553 |
$724 |
| Net Margin % |
31.8% | –81.2% | –3.7% |
15.4% | 2.4% |
Where Your Cash Went — May 2026
What This Means
💰 Revenue in
$29,494 came in — right on your 4-month average.
📦 Cost of goods
$18,118 to product costs — 61¢ of every dollar.
👤 Owner wages
$7,273 out — the biggest single outflow this month.
🔧 Equipment
$4,572 into new machinery — a capacity investment.
📊 Net result
Ended at $18,126 — profitable, but cash down four months running.
Key Accounts
Cash in Bank
$18,126
$5,205 from April
Accounts Payable
$4,083
Alpen Design Works · all current
Accounts Receivable
$0
Cash business — nothing outstanding
Long-Term Debt
$0
Debt-free ✓
Financial Health
Healthy
Current Ratio
4.48×
$4.48 in current assets for every $1 owed short-term.
Healthy
Quick Ratio
4.13×
Liquid assets cover all short-term bills 4× over.
Watch
Owner Comp % of Revenue
24.7%
Owner wages are healthy now; target under 20% as revenue grows.
Watch
Profit Quality
1.46
Cash converting at 1.46× earnings — slightly above the 0.8–1.2 range, driven by A/P timing.
Before Next Month
! Before Next Month — June 2026
The Event
The $4,083 Alpen Design Works balance — YKK hardware, cord, and thread — is likely due in June.
Estimated Impact
~$4,083 cash outflow in June.
One Action Item
By June 15: confirm payment terms and due dates with Alpen to keep your materials supply uninterrupted.
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This report is prepared for informational purposes only and is based on data provided by the client.
It does not constitute tax, legal, or investment advice. All figures are accrual basis.
Please consult a qualified professional for specific guidance.