Revenue
$356,820
Total money coming in from patient care
The total amount paid by residents and their families for care services
Operating Costs
$285,456
Money spent to run the facility
Includes staff salaries, supplies, utilities, maintenance, and other daily operations
Operating Margin
19.9%
Profit percentage from operations
Out of every dollar of revenue, this much becomes profit before financing costs
EBITDA
$71,364
Cash profit from core business
Earnings Before Interest, Taxes, Depreciation, Amortization - the true operating cash profit
Spencer Luxury Care is highly profitable, with an operating margin of 19.9%. This means that for every dollar of revenue, the facility keeps about 19.9 cents as profit after paying all operating expenses.
The EBITDA of $71,364 represents the true cash-generating ability of the business before accounting for debt payments, taxes, and accounting adjustments. This is what lenders focus on when evaluating loan repayment capacity.
Revenue Assumptions
- • Occupancy remains at 100% (maximum capacity)
- • Annual revenue growth of 8-10% (industry average)
- • Rate increases align with healthcare inflation
Cost Assumptions
- • Operating costs increase at 7-8% annually
- • Staff wages grow with market rates
- • Operational efficiency improves slightly
EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization)
The cash profit a business makes from its core operations. It removes accounting adjustments so you can see the true earning power of the business.
Operating Margin
The percentage of revenue that becomes profit after paying operating expenses. A 20% margin means $0.20 of every dollar becomes profit.
Debt Service Coverage Ratio (DSCR)
How many times over the business can pay its debt obligations from operating cash flow. A ratio of 1.5x means the business generates $1.50 for every $1.00 of debt payments.
Cash Flow
Actual money moving in and out of the business. Unlike accounting profits, cash flow shows real money available for debt payments, investments, and distributions.