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S8

Growth Destroying Margin

Margin / base / 3 to 6 months

What it detects

Revenue is growing but gross margin is declining because contractor costs are growing faster.

Why it matters

At the current rate of margin compression, how many months until gross margin hits [redacted]%? Below [redacted]%, the delivery model is structurally cash-negative.

Severity levels

  • MEDIUM
  • HIGH

Thresholds

  • CONTRACTOR_REVENUE_MULTIPLE
  • GROSS_MARGIN_FLOOR

Exact thresholds, formulas, and severity bands are omitted from this public view. The full methodology, with every figure, is available in the authenticated app.

How it connects

At current trajectory, gross margin reaches the [redacted]% floor in ~[redacted] months. Below this, the delivery model is cash-negative.

Sources

  • Eagle Rock CFO
  • SPI Research / Deltek
  • SPI Research full report via Sage

SEE IT ON REAL NUMBERS

The exact thresholds, the formula, and your own figures are in the authenticated app. See it against a real, simulated dataset for Integra Executive Services, our public demo company, or connect your own QuickBooks Online account.

Get accessSee the nightly proof