
Free Cash Flow Conversion: The Ratio That Tells You Whether Your Profit Is Actually Cash
Healthy FCF conversion runs near 80% of EBITDA; below 50% means receivables, inventory or CapEx are eating profit. Formula, benchmarks and fixes.
#benchmarks
Industry benchmarks, performance metrics, and comparative data to evaluate financial and operational health

Healthy FCF conversion runs near 80% of EBITDA; below 50% means receivables, inventory or CapEx are eating profit. Formula, benchmarks and fixes.

Capital turnover is net sales divided by average capital employed — a 3.0 ratio means each dollar of capital produced three dollars of sales that year.

Billable utilization fell to 66.4%, a 19-year low — yet top firms run 70–80%. What each point is worth and how to recover it without burnout.

With 62% of finance professionals reporting an AI error has reached a client, this guide shows how to build a 50-document ground-truth test set, score field-level accuracy and straight-through rate, and set confidence thresholds for invoice extraction and expense classification.

CAC is total sales and marketing cost divided by new customers acquired in the same period — $6,000 of spend across 30 customers is a $200 CAC. This guide covers what belongs in the numerator, how to pair CAC with gross-profit LTV (a 3:1 to 4:1 ratio is the practical small-business target) and payback period (under 12 months for SMB customers, up to 24 for enterprise), 2026 CAC ranges by business type, and seven ways to lower CAC without cutting customer volume.

Percentage rent by vendor (8–15% of gross sales, booked as ASC 842 variable lease income), CAM pools with annual true-ups, and one POS settlement split across a dozen merchants — the account structure a food hall operator needs, plus the benchmarks (revenue per square foot, bar share, occupancy) that show a hall is working.

$329M in U.S. axe throwing revenue, 1.4% growth, corporate bookings at 44.6% of sales — what the numbers say about building a profitable venue in 2026.

Car wash cash flow margins 38–67% by format — flex 38–60%, full-service 35–58%, in-bay/self-service 50–67% — plus membership economics and bookkeeping.

80 jobs/month → 16 profitable loads math, 20–40% margins, membership vs commercial accounts — what makes junk removal profitable in 2026.

Trampoline parks: $1.8–$3.5M franchise vs $0.9–$2.1M independent revenue, 7.1% CAGR to $3.7B by 2030 — what drives profit in 2026.

In Q1 2026 the median small business sold for 2.7x cash flow, but multiples range from the low end for restaurants to 6–10x EBITDA for SaaS and up to 8x for express car washes. How SDE vs. EBITDA, industry, owner dependence, and clean financial records determine what your business sells for.

Local SEO retainers run $500–$5,000/month in 2026, but the spread by industry is 8x — legal services pay $2,500–$5,000 while photography studios pay $300–$600, driven by local competition rather than vendor quality. Benchmarks by industry and business size, the free Google Business Profile work that moves rankings, and how to tie the spend back to revenue.