portfolio-monitoring

Portfolio Monitoring

Workflow

Step 1: Ingest Financial Package

• Accept the portfolio company's financial package (Excel, PDF, or CSV)
• Extract: Revenue, EBITDA, cash balance, debt outstanding, capex, working capital
• Identify reporting period and compare to prior period and budget/plan

Step 2: KPI Extraction & Variance Analysis

Financial KPIs:

• Revenue vs. budget ($ and %)
• EBITDA and EBITDA margin vs. budget
• Cash balance and net debt
• Leverage ratio (Net Debt / LTM EBITDA)
• Interest coverage
• Capex vs. budget
• Free cash flow

Operational KPIs (adapt to sector — ask user):

• Customer count / revenue per customer
• Employee headcount / revenue per employee
• Backlog / pipeline
• Churn / retention
• For healthcare services: same-store revenue, visit/case volume, payor mix (Medicare/Medicaid/commercial/self-pay), net revenue per visit, labor cost as % revenue, provider productivity, de novo ramp vs. plan
• For AI/automation: ARR, net revenue retention, gross margin, CAC payback

Step 3: Flag & Summarize

• Green: Within 5% of plan
• Yellow: 5-15% below — flag for discussion
• Red: >15% below or covenant breach risk — immediate attention

Output:

1. One-paragraph executive summary ("Company X is tracking [ahead/behind/on] plan...")
2. KPI table: actual vs. budget vs. prior period
3. Red/yellow flags with context
4. Covenant compliance status (if applicable)
5. Questions for management

Step 4: Trend Analysis

If multiple periods are provided:

• Chart key metrics over time (revenue, EBITDA, cash)
• Identify trends — accelerating, decelerating, stable
• Compare vs. underwriting case

Important Notes

• Always ask for the budget/plan to compare against if not provided
• Don't assume sector-specific KPIs — ask what matters for this company
• If covenant levels aren't known, ask for the credit agreement terms
• Output should be board-ready — concise, factual, no fluff