The Commercial Engine™ · Layer 2: Demand Translation

Demand Translation Calculator

Convert pipeline into demand forecast, inventory requirement, DIFOT risk, working capital impact and EBITDA confidence. Built on operator-grade weighted scoring — directional, rigorous, commercially credible.

Inputs drive real output changes. Scores are calculated from weighted assumptions. This is decision-support, not a financial audit. Use it to identify where your system is leaking value before it appears in the EBITDA line. Built for industrial, manufacturing and distribution businesses across Australia and APAC.

Pipeline Quality

Total Pipeline Value ($M)

Stage realism — are stages weighted to reality? 1 = optimistic / inflated 10 = genuinely stage-gated

Timing integrity — how credible are close dates? 1 = evergreen / pushed out 10 = actively managed

Mix visibility — product & location split known? 1 = revenue only 10 = by SKU and location

Historical conversion rate (%) Actual pipeline converted to won orders over the last 12 months

30%

Pipeline hygiene — how actively is it managed? 1 = stale / no owner 10 = weekly review with accountability

Demand Confidence

Forecast accuracy — how often does demand land close to plan? 1 = frequently wrong by >20% 10 = consistently within 10%

Location clarity — demand known by site or branch? 1 = national aggregate only 10 = by location and SKU

Lead time visibility — are lead times built into planning? 1 = not considered 10 = embedded in demand signal

Avg lead time (weeks)

Service buffer (weeks)

Inventory & Operations

Current inventory ($M)

Current inventory turns

Current DIFOT performance (%) Delivered In Full On Time — actual measured rate

80%

Excess / slow-moving stock (% of inventory) Stock unlikely to turn in the next 6 months

20%

Commercial & Financial

Annual revenue ($M)

Gross margin (%)

EBITDA margin (%)

EV multiple (x EBITDA)

Discount leakage — how much is given away informally? 1 = structural / uncontrolled 10 = governed / approved

Customer retention quality 1 = high churn / price-led 10 = sticky / relationship-led

DSO (debtor days)

System Scores

Pipeline Clarity —

Demand Confidence —

DIFOT Risk —

EBITDA Confidence —

Financial Outputs

Expected demand (12m) —

Required inventory —

Excess inventory at risk —

Working capital impact —

Cash flow impact —

EBITDA ($M) —

Margin leakage risk —

Exit Value Confidence

Indicative EV Range

—

Enter inputs to calculate

Complete the inputs above to generate your system assessment.

Apply the Insight Pipeline Clarity Layer→ Pricing Leakage Calculator→ Branch Expansion Engine→ Working Capital Calculator→