This is the average among all hearts — the overall operational state of the business. The main objective of ForgeLab is to have this KPI as high as possible.
-8.3%Overall state of the business — total health score vs last quarter: -8.3%good trend for your businessneutral trend for your businessbad trend for your business
+12.4%Overall state of the business — total health score overall: +12.4%good trend for your businessneutral trend for your businessbad trend for your business
Total Health Score
Revenue
Revenue — Total income generated from sales of goods or services before any costs are deducted — the top line of the income statement.
$4.82M
+2.1%Revenue — vs last quarter: +2.1%good trend for your businessneutral trend for your businessbad trend for your business+12.4%Revenue — overall: +12.4%good trend for your businessneutral trend for your businessbad trend for your business+3.4%Revenue — health vs last quarter: +3.4%good trend for your businessneutral trend for your businessbad trend for your business+6.8%Revenue — health overall: +6.8%good trend for your businessneutral trend for your businessbad trend for your business
86%
Designed for operational efficiency — it shows how efficient operations are behind this financial metric. The higher the percentage, the better the operations (better cost, less time, better productivity, more profitability, more cash flow, less resources, higher quality, more capacity, more reliability, bigger scalability).
COGS
COGS — The direct costs of producing the goods or services sold, such as materials and direct labor — excludes overhead.
$2.31M
+0.8%COGS — vs last quarter: +0.8%good trend for your businessneutral trend for your businessbad trend for your business+6.7%COGS — overall: +6.7%good trend for your businessneutral trend for your businessbad trend for your business-2.4%COGS — health vs last quarter: -2.4%good trend for your businessneutral trend for your businessbad trend for your business+1.9%COGS — health overall: +1.9%good trend for your businessneutral trend for your businessbad trend for your business
71%
Designed for operational efficiency — it shows how efficient operations are behind this financial metric. The higher the percentage, the better the operations (better cost, less time, better productivity, more profitability, more cash flow, less resources, higher quality, more capacity, more reliability, bigger scalability).
Labor Costs
Labor Costs — Total expenditure on workforce, including wages, salaries, bonuses, and employer-paid benefits — a key operating cost driver.
$1.06M
+1.6%Labor Costs — vs last quarter: +1.6%good trend for your businessneutral trend for your businessbad trend for your business+11.4%Labor Costs — overall: +11.4%WARNING: Critical Threshold Reached1.) Align headcount to demand: pause open requisitions, redeploy surplus capacity, and contract spend to live volume.2.) Attack the overtime line — fix the scheduling gaps that turn regular hours into premium-rate labor.3.) Raise output per FTE through process automation and standard work so the same team delivers more without added cost.good trend for your businessneutral trend for your businessbad trend for your business-9.6%Labor Costs — health vs last quarter: -9.6%WARNING: Critical Threshold Reached1.) Align headcount to demand: pause open requisitions, redeploy surplus capacity, and contract spend to live volume.2.) Attack the overtime line — fix the scheduling gaps that turn regular hours into premium-rate labor.3.) Raise output per FTE through process automation and standard work so the same team delivers more without added cost.good trend for your businessneutral trend for your businessbad trend for your business-14.2%Labor Costs — health overall: -14.2%WARNING: Critical Threshold Reached1.) Align headcount to demand: pause open requisitions, redeploy surplus capacity, and contract spend to live volume.2.) Attack the overtime line — fix the scheduling gaps that turn regular hours into premium-rate labor.3.) Raise output per FTE through process automation and standard work so the same team delivers more without added cost.good trend for your businessneutral trend for your businessbad trend for your business
38%
Designed for operational efficiency — it shows how efficient operations are behind this financial metric. The higher the percentage, the better the operations (better cost, less time, better productivity, more profitability, more cash flow, less resources, higher quality, more capacity, more reliability, bigger scalability).
OpEx
OpEx — Ongoing costs of running the business that are not directly tied to production, such as software, facilities, and admin.
$0.62M
+0.4%OpEx — vs last quarter: +0.4%good trend for your businessneutral trend for your businessbad trend for your business+5.6%OpEx — overall: +5.6%good trend for your businessneutral trend for your businessbad trend for your business-0.6%OpEx — health vs last quarter: -0.6%good trend for your businessneutral trend for your businessbad trend for your business-3.1%OpEx — health overall: -3.1%good trend for your businessneutral trend for your businessbad trend for your business
63%
Designed for operational efficiency — it shows how efficient operations are behind this financial metric. The higher the percentage, the better the operations (better cost, less time, better productivity, more profitability, more cash flow, less resources, higher quality, more capacity, more reliability, bigger scalability).
EBITDA
EBITDA — Earnings Before Interest, Taxes, Depreciation, and Amortization — a proxy for core operating profitability.
$0.83M
-0.6%EBITDA — vs last quarter: -0.6%good trend for your businessneutral trend for your businessbad trend for your business-3.2%EBITDA — overall: -3.2%good trend for your businessneutral trend for your businessbad trend for your business+2.0%EBITDA — health vs last quarter: +2.0%good trend for your businessneutral trend for your businessbad trend for your business-1.4%EBITDA — health overall: -1.4%good trend for your businessneutral trend for your businessbad trend for your business
68%
Designed for operational efficiency — it shows how efficient operations are behind this financial metric. The higher the percentage, the better the operations (better cost, less time, better productivity, more profitability, more cash flow, less resources, higher quality, more capacity, more reliability, bigger scalability).
Operating Cash Flow
Operating Cash Flow — Cash generated from core business operations after operating costs and working-capital movements — measures liquidity health.
$0.71M
-1.1%Operating Cash Flow — vs last quarter: -1.1%good trend for your businessneutral trend for your businessbad trend for your business-8.3%Operating Cash Flow — overall: -8.3%good trend for your businessneutral trend for your businessbad trend for your business-2.8%Operating Cash Flow — health vs last quarter: -2.8%good trend for your businessneutral trend for your businessbad trend for your business-5.6%Operating Cash Flow — health overall: -5.6%good trend for your businessneutral trend for your businessbad trend for your business
44%
Designed for operational efficiency — it shows how efficient operations are behind this financial metric. The higher the percentage, the better the operations (better cost, less time, better productivity, more profitability, more cash flow, less resources, higher quality, more capacity, more reliability, bigger scalability).
Financial Overview
VerifiedProvided information is truthful, lawful, coherent, valuable — proved by advanced system and certified specialist.
Financially the business is solvent but badly allocated. Revenue of $4.82M is supported by a $5.61M cost base in which the fixed share has grown faster than the variable share. EBITDA of $1.21M looks adequate on paper, yet only $0.63M of it converts to cash — roughly half of reported earnings is tied up in the balance sheet rather than available for reinvestment.
01
Too much capital is committed to fixed labor capacity. The $1.76M labor line is funded as permanent cost against demand that is still variable. Convert a portion of that spend into output-linked capacity and redirect the released cash into the channels already returning above 12%.
02
Working capital is financing customers instead of operations. With $1.21M of EBITDA converting to only $0.63M of operating cash, the shortfall is an unpriced credit line extended to buyers. Shorten payment terms and align supplier terms to the collection cycle.
03
Overhead is allocated to scale that has not arrived. The $0.94M of OpEx and the input-cost drift inside $2.91M of COGS are both sized for a bigger revenue base. Re-scope committed overhead to current output and re-tender the largest input contracts.
Operational Summary
VerifiedProvided information is truthful, lawful, coherent, valuable — proved by advanced system and certified specialist.
Read across all six metrics together, the operation is not underperforming — it is mistimed. Capacity is staffed before volume confirms it, inputs are bought before mix is known, and cash is invoiced after the work has already been paid for internally. That lag is invisible in the top line and shows up everywhere else.
01
Capacity is staffed to forecast instead of to signal. Labor was added ahead of the volume meant to absorb it, so utilisation — not wage rates — is the real failure: the same output is produced by more paid hours than it needs.
02
The order-to-cash cycle is slower than the deliver-and-pay cycle. Work is completed and supplied in one period but collected in the next, so the business finances its own growth out of working capital and every incremental sale worsens liquidity.
03
Procurement and overhead are set on trailing information. Input purchasing responds to last period's consumption while OpEx is provisioned against a headcount plan that volume has not yet validated — a standing cost base that cannot flex downward.
