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.

Transportation & logistics

Per-mile economics, in plain English.

Trucking, delivery, fleet — fuel and labor swing margins fast. Get a quick read on your real profitability with transportation industry benchmarks.

Free

Industry benchmarks

No signup

Worth quotingTrucking businesses with DSCR below 1.3× lose access to favorable fleet-loan terms — the rate spread between 1.3× and 1.5× DSCR borrowers is often 150–250 bps.

Built for owners and analysts who say…

"Fuel and driver costs are eating margins.
"Equipment loan stack is getting heavy.
"DSCR check before refinancing or adding a tractor.

What you'll get

Transportation-specific operating margin and EBITDA
DSCR / Debt-to-EBITDA for fleet-loan lenders
Cash cycle read on factoring or net-30 customers
PDF for your fleet lender

Common questions about transportation & logistics financials

What is a good operating margin for trucking?+

Operating margin of 5–12% is healthy for most for-hire trucking businesses. Specialized hauling (oversized, hazmat) can hit 12–18%. Below 4% leaves no buffer for fuel spikes or driver shortages — common causes of trucking company failure.

What DSCR do fleet lenders require?+

Most equipment-finance lenders for fleets require DSCR of 1.3× or higher. Bank lines of credit secured by AR want 1.5×. Factor companies operate differently — they advance against invoices rather than underwrite DSCR.

How do I improve cash flow when customers pay net-60?+

Three options: (1) factor invoices (immediate cash, 2–4% fee), (2) tighten DSO via faster invoicing and early-pay incentives, (3) negotiate net-30 with strategic customers in exchange for rate concessions. Factoring is fastest but most expensive.

What metrics matter most for a trucking business?+

Operating margin per loaded mile, fuel cost as % of revenue, driver pay as % of revenue, DSCR, Debt/EBITDA, and cash conversion cycle. Per-mile economics tell you whether each load is profitable; the ratios tell you whether the whole business is sustainable.