Gary KadiHelping Dentists Build Profitable Practices That Deliver Time Freedom, Clarity, and Sustainable Growth

Whats the simplest way to increase EBITDA?

Name: Whats the simplest way to increase EBITDA?
Uploaded: 2024-07-29T22:57:29+00:00
Duration: 49 s
Channel: Gary Kadi
Description: Gary Kadi shows how growing revenue drives EBITDA. When a practice increased from $762k to higher revenue while expenses rose only modestly from $593k to…

29 Jul 2024 · 1 min

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Gary Kadi shows how growing revenue drives EBITDA. When a practice increased from $762k to higher revenue while expenses rose only modestly from $593k to $756k, net profit jumped from $169k to $407k. The lesson: focus on top-line growth to improve margins.

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The easiest way to grow your EBITDA is to grow the top of your practice. So top line is how much money comes in. Just look at this. This is a practice they didn't think they would be able to transact. They were doing 762. Their overheads 5, 593. They had a net income of 169,000. If you look at this practice, you build the top line, it changes the ratio of the percentages of cost below it. Notice that the expenses went up a couple hundred thousand five hundred and ninety three to 756. But look at the ratio, because once your fixed costs are handled, all the typical overhead things that you have, no matter what, when you raise the top automatically, you're going to get a better percentage on the bottom. 407,000 is a great profit. And by the way, even if you're not selling, you should do this anyway.