Company Name

Financial Report: Month Year
Generated by PlainFinancials.com on

Gulf Trading LLC

Monthly Briefing: November 2024

PlainFinancials Report
Safe Profitable with healthy cash runway
Cash Runway 8 weeks
Net Margin 11%
Sleep Test Pass
This Month at a Glance
✓ Made AED 55,000 profit
⚠ Cash runway: 2 months
→ Priority: Collect AED 80K overdue

Did you make a profit this month?

Yes, you made a profit
AED 55,000

From every AED 1 of sales, you kept AED 0.11 as profit after all expenses.

Your 5 key numbers

These tell you if your business is healthy

Total Sales
AED 500,000
▲ 7.5% vs last month
Money that came in from customers this month
Gross Margin
35%
Industry average: 25-35%
What you keep after paying for what you sell
Cash in Bank
AED 45,000
▼ 37% vs last month
Money available right now to pay bills
Cash Runway ?
1.0 months
Based on YTD average burn
Your survival metric: months until cash runs out
Net Profit Margin
11%
Industry average: 5-15%
What you keep after all costs, including interest

How do you compare to your industry?

Your metrics vs typical businesses

Note: These are typical SME target ranges based on recent industry studies — not strict standards. Your specific situation may differ based on business model, geography, and company stage.

How fast does cash move through your business?

This explains why you might be profitable but short on cash

Stock sits in warehouse
19 days
then
Customers pay you
11 days
but
You pay suppliers in
9 days
21 days
Your cash is tied up for 21 days

You pay suppliers in 9 days but wait 11 days to get paid. Plus stock sits for 19 days. That's 21 days where your money is stuck and you can't use it.

Why this matters: This is often why profitable businesses run out of cash. The longer this cycle, the more money you need just to keep operating.

Where did your cash go this month?

Start from your profit, then see how customers, stock, loans and big purchases changed your bank balance.

1. Profit this month
Profit on your P&L: + USD 15
This is your profit after all income and expenses.
2. Cash tied up in customers and stock
Customers haven't paid you yet: - USD 167
You bought more stock: - USD 1,344
Total cash tied up: - USD 1,511
This is profit still sitting in invoices and inventory instead of in your bank.
How your bank balance changed
Profit this month: + USD 15
Cash tied up in customers & stock: - USD 1,511
Change in bank balance: - USD 154,426
You made a small profit, but cash dropped because more money went into stock, customers haven't paid yet, and large loan payments went out.

Your 3 actions this week

Do these to improve your business

1

Collect AED 50,000 from late customers

You have AED 187,000 waiting to be collected. Call or WhatsApp your top 3 customers who owe you money and agree on payment dates this week. Target: collect at least AED 50,000.

Result: This adds AED 50,000 to your bank account
2

Ask suppliers for 30-day payment terms

You're paying suppliers in 9 days, which is very fast. Call your main suppliers and ask if you can pay in 30 days instead. Even getting this on half your purchases helps.

Result: Keeps cash in your account 21 days longer
3

Pause non-essential spending until cash improves

With only 1 month of cash safety, hold off on any spending that isn't critical: extra marketing, office upgrades, new equipment. Wait until you have at least 3 months of runway.

Result: Protects your cash buffer
Want help implementing these actions? Book a Free 30-Min Review

Can you pay your upcoming bills?

Short-term: Yes

You have AED 2.99 of assets for every AED 1 you owe soon. That's healthy.

But watch your cash

Most of your assets are in stock and customer IOUs, not actual cash. If customers pay late or stock doesn't sell, you could still face a crunch.

Why this matters: Having assets doesn't mean you have cash. Make sure you can convert stock to sales and collect from customers before big bills are due.

Your cash flow forecast

Based on profit and working capital patterns (excludes new loans or major purchases)

How this works: This projection uses your current collection speed (DSO) and payment timing (DPO) to estimate how cash might move. It's a scenario, not a guarantee. Your actual cash will depend on sales growth, customer payments, and spending decisions.

Summary for bank or investor meetings

Use this when someone asks "how is your business doing?"

"Sales are up 7.5% this month at AED 500,000, and we are profitable with AED 55,000 net profit (11% margin). Our main focus right now is improving cash flow. We are collecting from customers faster than average but paying suppliers too quickly. We are working on extending payment terms and have AED 187,000 in receivables to collect. Current ratio is healthy at 2.99."
Strength: Gross margin within industry range
Risk: Cash locked in stock for too long

Want to go deeper?

Discuss these with your accountant or finance advisor:

  • Review your inventory purchasing plan
  • Model different sales scenarios for next quarter
  • Revisit loan repayment timing