What is a good EBITDA margin for a small business?

Most healthy small businesses run an EBITDA margin between 10% and 20%. Service businesses and SaaS often run higher (20–35%+), while restaurants and retail typically run 10–15%. CFO Grade compares your EBITDA margin to industry-specific benchmarks across 16 sectors.

What DSCR do lenders look for?

Most SBA and commercial lenders require a Debt Service Coverage Ratio (DSCR) of at least 1.25x. Construction surety bonds often require 1.5x or higher. A DSCR below 1.0x means your EBITDA does not cover your annual debt payments.

How does CFO Grade calculate the letter grade?

CFO Grade scores 24+ financial ratios across profitability, liquidity, leverage, and efficiency — weighted by industry. The composite score maps to a letter grade from A+ to F. The full methodology and benchmark sources are described in the report and the disclaimer page.

Yes. The full analysis, 24+ ratios, letter grade, and industry benchmarks are completely free with no signup. Optional paid features include a $9 PDF export and a $19 Pro Pass with AI-generated CFO memo and 30 days of unlimited PDFs.

Do I need to create an account?

No account is required. Your numbers stay on your device unless you explicitly opt in to anonymized peer benchmarking. Pro entitlements are bound to your device with a restore link you can email yourself.

Is CFO Grade financial advice?

No. CFO Grade provides educational insights for business owners and analysts. It is not financial, tax, legal, or investment advice. Always verify the output with a qualified professional before making business decisions.

How does CFO Grade estimate what my business is worth?

Every report includes an Enterprise Value range built from your industry's typical EV/EBITDA multiple applied to your EBITDA, adjusted for size (Duff & Phelps size-discount methodology) and quality (your CFO Grade). The paid report unlocks the lender view vs. buyer view breakdown, implied equity to owners, sensitivity analysis, and full source-cited methodology. The dedicated valuation calculator lives at /valuation with industry-specific pages for 11 sectors.

Why does my business valuation change when I rerun the report?

The range moves with three things: your EBITDA (the biggest driver), your revenue size band (which sets the size discount), and your CFO Grade quality factor. When you run a second report in a later period, the Enterprise Value delta is shown prominently — 'You built $220,000 of value since Q3' or 'You lost $180,000 this quarter' — so you can watch the number that actually matters to lenders and buyers over time.

Healthcare practice

How does your practice compare to other healthcare businesses?

Dental, medical, vet — get a financial health read tuned to private-practice economics, with industry-specific benchmarks.

Free

Industry benchmarks

No signup

Worth quotingPrivate medical practices that breach DSCR 1.25× during equipment-loan acquisition typically take 18–24 months to recover — careful pre-deal modeling is the cheapest insurance you can buy.

Built for owners and analysts who say…

"Production is up but the bank account isn't.
"Thinking about adding chairs / a second location and need to vet the numbers.
"DSCR check before a practice acquisition loan.

What you'll get

Healthcare-practice-specific benchmarks
DSCR check for practice-acquisition loans
Margin trend tracking quarter over quarter
PDF for your banker

Common questions about healthcare practice financials

What is a healthy EBITDA margin for a dental or medical practice?+

Mature private practices typically run EBITDA margin of 20–35% after market-rate provider compensation. Below 15% suggests over-investment in equipment, under-pricing, or insurance mix issues. Above 35% is excellent and supports a premium acquisition multiple.

How do banks evaluate practice acquisition loans?+

Banks underwrite practice acquisition loans on DSCR (1.25× minimum), historical collections (target: 30–45 days DSO), patient/provider retention, and post-acquisition projected EBITDA after debt service. They typically lend 80–100% of the purchase price for established practices.

Why is my practice's production up but the bank account isn't?+

Three usual suspects: (1) insurance mix shifting toward slower-paying carriers (DSO climbing), (2) equipment loan service ratcheting up, (3) new providers ramping but not yet at productivity. Look at DSO and DSCR — they tell the story fast.

What metrics should I track quarterly?+

Collections, DSO, gross margin (after lab/supply costs), EBITDA margin (after market-rate provider comp), DSCR, and active patient count. CFO Grade computes the financial side; practice management software handles the patient-side metrics.