ARVENIX

Operational ROI Calculator

Quantify EBITDA recovery, revenue capacity, and working capital released by improving inventory, material readiness, scheduling, backlog management, and install execution.

Gross annual EBITDA opportunity$2,014,500

Net recurring EBITDA impact$1,939,500After annual Arvenix platform cost

Working capital released$1,200,000Cash released from inventory. Not counted as EBITDA.

Year 1 ROI1,511.6%0.7 month EBITDA payback

Company baseline

Core economics

Annual install volume

Current annual completed installation volume.Average job revenue

Inventory on hand

Predetermined Arvenix baseline: $8 million.Labor

Materials

Marketing

Fully loaded contribution margin38%100% less labor, materials, and marketing. Recovered revenue is converted to EBITDA contribution using this margin.

Sustainable capacity recovery

Revenue opportunity

Sustainable capacity recovery

Default assumption: 7% of existing annual installation volume.Annual install volume

Current completed install volume used as the recovery baseline.

Current annual installs4,000

Sustainable recovery rate7%

Recovered installs280

Recovered revenue$4,200,000

Capacity EBITDA opportunity$1,596,000

Capacity recovery is based on existing installation volume rather than theoretical maximum technician capacity. The default 7% represents sustainable recovery through improved material readiness, scheduling, backlog management, geographic utilization, and reduced operational disruption.

Inventory optimization

Working capital + EBITDA

Inventory reduction

Reduction in inventory required to support the same operating volume.Inventory carrying cost

Estimated annual cost of carrying excess inventory.

Inventory baseline$8,000,000

Working capital released$1,200,000

Annual carrying cost savings$216,000

Inventory reduction is treated as working capital release. Only the avoided annual carrying cost is included in EBITDA improvement.

Operational improvement

Editable annual assumptions

Warehouse savings

Reduced storage footprint, overflow, or third-party warehouse expense.Freight / transfer savings

Reduced unnecessary transfers, repositioning, and expedited freight.Inventory shrink savings

Reduction in lost, damaged, stranded, or unaccounted inventory.Administrative labor savings

Reduced manual reconciliation, reporting, follow-up, and exception handling.Rework / repeat trip savings

Avoided repeat trips, material errors, and preventable operational rework.Backlog / cancellation savings

Defaults to $0 to reduce the risk of double counting capacity recovery.

Arvenix investment

Customer cost

Implementation

Annual platform cost

Annual value creation

EBITDA impact

Inventory carrying cost$216,000

Warehouse footprint$50,000

Freight & transfers$35,000

Inventory shrink$30,000

Administrative labor$37,500

Rework / repeat trips$50,000

Sustainable capacity recovery$1,596,000

Backlog / cancellation recovery$0

Direct operating savings$418,500

Recovered installs280

Recovered revenue$4,200,000

Fully loaded contribution margin38%

Capacity EBITDA contribution$1,596,000

Gross EBITDA opportunity$2,014,500

Annual Arvenix expense($75,000)

Net recurring EBITDA impact$1,939,500

Year 1 cost$125,000

Year 1 net EBITDA benefit$1,889,500

Year 1 ROI1,511.6%

Recurring ROI2,586%

EBITDA payback0.7 months

Working capital released$1,200,000

Working capital release is shown separately and is not included in EBITDA or ROI. Recovered revenue is converted to EBITDA contribution using the fully loaded contribution margin rather than counted dollar for dollar. Backlog and cancellation savings default to zero to reduce the risk of double counting recovered installation capacity.