Video Walkthrough
Key Metrics — May 2026
Revenue
$98,155
▲ +12.4% vs April
4-mo avg: $75,525
Net Income
$37,804
▲ +498% vs April
4-mo avg: $4,053
Cash in Bank
$40,869
▲ +$10,598 vs April
Peoples Bank + Petty Cash
Profit Quality Score
0.19
▼ Below healthy (0.8–1.2)
T&M A/R driving gap
Three Power Insights
May Was the Best Month Yet — the Cash Just Hasn't Arrived
MasterBilt billed $98,155 in May, the highest revenue in four months, and earned $37,804 in net income. But the Profit Quality Score came in at 0.19 — far below the healthy range of 0.8–1.2. In plain English: only 19 cents of every dollar earned actually hit the bank account. The culprit is a $37,250 invoice to T&M Construction, invoiced May 27th and still open at month-end.
→ Reach out to T&M by June 12 to confirm payment timeline. Once that clears, MasterBilt's cash position normalizes significantly.
One Client Holds 92% of Your Receivables
T&M Construction represents $37,250 of the $40,622 total A/R — 91.7% of everything owed to MasterBilt. This is a concentration risk. It's not a current crisis — the invoice is only days old and T&M has paid reliably — but it's a structural pattern worth addressing as the business grows.
→ Consider building payment milestone terms into large commercial contracts ($15K+) so partial payments arrive before project completion.
Last Month's Margin Problem Reversed — Sharply
In April we flagged that materials costs were compressing margins — gross margin had fallen to 26% as job costs climbed. May tells the opposite story. Gross margin recovered to 55%, the strongest of the year, while COGS dropped from $64,588 to $43,949. The jobs that closed in May were priced and delivered with healthy room to spare — exactly the direction the business needed after a volatile spring.
→ Worth understanding what made May's jobs more profitable so the pricing and scoping that worked can be repeated on the next round of bids.
P&L Summary
| Feb 2026 | Mar 2026 | Apr 2026 | May 2026 | 4-Mo Avg | |
|---|---|---|---|---|---|
| Revenue | $80,201 | $36,400 | $87,343 | $98,155 | $75,525 |
| COGS | $49,099 | $56,042 | $64,588 | $43,949 | $53,419 |
| Gross Profit | $31,102 | −$19,642 | $22,754 | $54,207 | $22,105 |
| Gross Margin % | 38.8% | −54.0% | 26.1% | 55.2% | 29.3% |
| Advertising & Mktg | $3,902 | $1,755 | $880 | $1,199 | $1,934 |
| Auto Expense | $1,194 | $1,185 | $857 | $1,070 | $1,076 |
| Subscriptions & Software | $450 | $707 | $532 | $1,103 | $698 |
| Legal & Professional | $2,295 | $135 | $170 | $155 | $689 |
| Acctg & Professional | — | — | $4,700 | $2,950 | $1,913 |
| All Other Expenses | $6,380 | $9,443 | $3,797 | $5,326 | $6,237 |
| Total Expenses | $14,221 | $11,225 | $10,936 | $10,803 | $11,796 |
| Operating Profit | $16,881 | −$30,867 | $11,818 | $43,404 | $10,309 |
| Operating Margin % | 21.0% | −84.8% | 13.5% | 44.2% | 13.6% |
| Owner's Salary | $5,000 | $5,250 | $5,000 | $5,600 | $5,213 |
| Charitable Contributions | $3,673 | — | $500 | — | $1,043 |
| Net Income | $8,209 | −$36,117 | $6,318 | $37,804 | $4,053 |
| Net Margin % | 10.2% | −99.2% | 7.2% | 38.5% | 5.4% |
Note: The 4-month average margin percentages are calculated on total dollars across all four months (total profit ÷ total revenue), not by averaging each month's percentage. This reflects the true blended margin — averaging the percentages would let March's low-revenue loss month distort the result.
Cash Flow Waterfall — May 2026
Where the money moved
What This Means
Revenue → Earnings
$98K in May jobs produced $37,804 net income — the strongest earning month of the year by a wide margin.
Earnings → Cash Gap
That $37,804 didn't fully land in the bank. A $40,625 spike in A/R — nearly all from one T&M Construction invoice — absorbed the earnings and then some.
Credit Line Drawn
MasterBilt pulled $10,000 from the LOC in May to cover operations while waiting on client payments. This is a bridge, not a problem — but it confirms the urgency of collecting T&M.
Debt Service Solid
Loan payments of $693/month are comfortable — DSCR of 14x means operating profit covers debt service 14 times over.
Next Move
When T&M's $37,250 arrives, the LOC draw can be repaid and cash fully normalizes. That single collection event transforms the month's financial picture.
Key Accounts Snapshot
Cash in Bank
$40,869
▲ +$10,598 vs April
Accounts Receivable
$40,622
▲ +$40,625 (T&M invoice)
Accounts Payable
$11,596
▲ +$10,470 · All current
Chase Visa (0997)
$28,245
▼ −$10,242 paydown
Lowe's Synchrony
$1,973
▼ −$283 paydown
Line of Credit (1020)
$30,173
▲ +$10,000 draw in May
Eli Yoder Loan
$9,699
▼ Paying down on schedule
Gehl Skid Steer Loan
$11,207
▼ Paying down on schedule
Financial Health Ratios
Current Ratio
1.13
Watch
For every $1 owed short-term, MasterBilt has $1.13 available. Functional but thin — below the healthy 1.5 threshold. Improves significantly when T&M pays.
Quick Ratio
1.13
Watch
Cash + A/R covers current liabilities — but only because A/R is elevated by the T&M invoice. Underlying liquidity improves once collected.
DSO
12.4 days
Healthy
On average, customers are paying in under two weeks. Excellent collection speed across most of the portfolio.
DSCR
14.2x
Healthy
Operating profit covers loan payments 14 times over. Debt load is very manageable relative to earnings capacity.
Before Next Month
Before Next Month
The Event
T&M Construction payment due — Invoice #5/5981 for $37,250 (framing, roofing, windows, and siding at 208 N 4th St, Sterling), invoiced May 27th.
Estimated Impact
+$37,250 cash inflow. Enough to repay the $10,000 LOC draw, pay down Chase Visa further, and push the current ratio above 1.5 for the first time this year.
One Action Item
Send T&M a payment reminder by June 12 and confirm expected payment date. If no response, flag for the owner to follow up directly.
Also Worth a Look
You're already tracking jobs through Pro Builders — sharing that costing sheet with us each month would let us connect job-level profitability to the monthly numbers and pinpoint exactly which work drives the strongest margins.
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This report was prepared by Prosynergy Bookkeeping based on data exported from QuickBooks Online as of May 31, 2026.
All figures are on an accrual basis. This report is for informational purposes only and does not constitute financial,
tax, or legal advice. Please consult a licensed CPA or advisor for guidance specific to your situation.