Professional Documents
Culture Documents
Financial results
This model has been designed to be used in conjunction with The Economists Guide to Business Modelling. The model was developed by
Graham Friend and remains the copyright of Profile Books. Neither Profile Books, The Economist or Coleago Consulting Ltd accpets any
responsibility for any losses, accidents or events that occur directly or indirectly as a result of the use of the model.
For further information on consulting, bespoke modelling and business modelling training courses please contact Graham Friend at
graham.friend@coleago.com.
Range Name
Currency $ Currency
Years 1 2 3 4 5 6 7 8 9 10 Years
Operational forecasts
Operational forecasts
Revenue
This section examines revenues, costs of sale and operating costs.
Cost of sales
Operating costs
Year 1 2 3 4 5 6 7 8 9 10
Revenue line 1
Revenue description Revenue_Description_1
Opening customers - 000s
Closing customers - 000s Closing_Customers_1
Sales of per customer Sales_per_Customer_1
Selling price $ Selling_Price_1
Revenue line 2
Revenue description Revenue_Description_2
Opening customers - 000s
Closing customers - 000s Closing_Customers_2
Sales of per customer Sales_per_Customer_2
Selling price $ Selling_Price_2
Year 1 2 3 4 5 6 7 8 9 10
Year 1 2 3 4 5 6 7 8 9 10
Staff numbers
Opening staff -
Closing number of staff 0 0 0 0 0 0 0 0 0 0
Average number of staff 0 0 0 0 0 0 0 0 0 0 Average_Staff
Salary costs
Salary levels 0 0 0 0 0 0 0 0 0 0 Salary
Total salary costs 0 0 0 0 0 0 0 0 0 0
Additional employment costs 0 0 0 0 0 0 0 0 0 0
Total staff costs 0 0 0 0 0 0 0 0 0 0 Staff_Costs
Bad debt
Bad debt rate Bad_Debt_Rate_1
Bad debt rate Bad_Debt_Rate_2
Bad debt 0 0 0 0 0 0 0 0 0 0
Bad debt 0 0 0 0 0 0 0 0 0 0
Total bad debt 0 0 0 0 0 0 0 0 0 0 Total_Bad_Debt
Accounting
Accounting
Depreciation
This section performs basic accounting operations necessary to produce the financial statements.
Amortisation
Working capital
Financing
Taxation
Year 1 2 3 4 5 6 7 8 9 10
Assumptions
Capital expenditure Capital_Expenditure
Depreciation period Depreciation_Period
Depreciation of opening gross capex Opening_Depreciation_Capex
Gross capex to date
Accumulated depreciation to date
Depreciation account
Opening balance 0 0 0 0 0 0 0 0 0 0
Depreciation charge 0 0 0 0 0 0 0 0 0 0
Closing balance 0 0 0 0 0 0 0 0 0 0 Accumulated_Depreciation
Depreciation workings
Opening fixed assets 0 0 0 0 0 0 0 0 0 0 0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
10 0
0 0 0 0 0 0 0 0 0 0 Depreciation_Charge
Year 1 2 3 4 5 6 7 8 9 10
Assumptions
Intangible expenditure Intangible_Expenditure
Amortisation period Amortisation_Period
Amortisation of opening intangible spend Opening_Amortisation
Gross intangible expenditure to date
Accumulated amortisation
Amortisation account
Opening balance 0 0 0 0 0 0 0 0 0 0
Amortisation charge 0 0 0 0 0 0 0 0 0 0
Closing balance 0 0 0 0 0 0 0 0 0 0 Accumulated_Amortisation
Amortisation workings
Opening intangible assets 0 0 0 0 0 0 0 0 0 0 0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
10 0
0 0 0 0 0 0 0 0 0 0 Amortisation_Charge
Year 1 2 3 4 5 6 7 8 9 10
Debtors account
Debtor days Debtor_Days_1
Opening balance 0 0 0 0 0 0 0 0 0 0
Sales in the period 0 0 0 0 0 0 0 0 0 0
Cash received 0 0 0 0 0 0 0 0 0 0
Closing balance 0 0 0 0 0 0 0 0 0 0 Debtors_1
Debtors account
Debtor days Debtor_Days_2
Opening balance 0 0 0 0 0 0 0 0 0 0
Sales in the period 0 0 0 0 0 0 0 0 0 0
Cash received 0 0 0 0 0 0 0 0 0 0
Closing balance 0 0 0 0 0 0 0 0 0 0 Debtors_2
Stock account
Opening stock 0 0 0 0 0 0 0 0 0 0
Stock purchased 0 0 0 0 0 0 0 0 0 0 Cost_of_stock_purchased_1
Cost of goods sold 0 0 0 0 0 0 0 0 0 0
Closing stock 0 0 0 0 0 0 0 0 0 0 Stock_1
Creditors account
Creditor days Creditor_Days_1
Opening balance 0 0 0 0 0 0 0 0 0 0
Costs in the period 0 0 0 0 0 0 0 0 0 0
Cash paid 0 0 0 0 0 0 0 0 0 0
Closing balance 0 0 0 0 0 0 0 0 0 0 Creditors_1
Stock account
Opening stock 0 0 0 0 0 0 0 0 0 0
Stock purchased 0 0 0 0 0 0 0 0 0 0 Cost_of_stock_purchased_2
Cost of goods sold 0 0 0 0 0 0 0 0 0 0
Closing stock 0 0 0 0 0 0 0 0 0 0 Stock_2
Creditors account
Creditor days Creditor_Days_2
Opening balance 0 0 0 0 0 0 0 0 0 0
Costs in the period 0 0 0 0 0 0 0 0 0 0
Cash paid 0 0 0 0 0 0 0 0 0 0
Closing balance 0 0 0 0 0 0 0 0 0 0 Creditors_2
Year 1 2 3 4 5 6 7 8 9 10
Financing sssumptions
Equity issued Equity_Issued
Debt raised Debt_Issued
Debt repaid Debt_Repaid
Interest rate on debt Interest_On_Debt
Interest rate on overdraft Interest_On_Overdraft
Interest on cash deposits Interest_On_Deposits
Dividend proportion Dividend_Proportion
Equity account
Opening balance 0 0 0 0 0 0 0 0 0 0
Equity issued 0 0 0 0 0 0 0 0 0 0 Equity_Created
Closing balance 0 0 0 0 0 0 0 0 0 0 Closing_Equity
Debt account
Opening balance 0 0 0 0 0 0 0 0 0 0
Debt raised 0 0 0 0 0 0 0 0 0 0 Debt_Created
Debt repaid 0 0 0 0 0 0 0 0 0 0 Debt_Retired
Closing balance 0 0 0 0 0 0 0 0 0 0 Closing_Debt
Interest on cverdraft
Interest charge 0 0 0 0 0 0 0 0 0 0 Overdraft_Interest_Charge
Shares in issue
Opening shares in issue - 0 0 0 0 0 0 0 0 0
Shares issued during the year - - - - - - - - - -
Shares repurchased during the year
Closing shares in issue 0 0 0 0 0 0 0 0 0 0
Year 1 2 3 4 5 6 7 8 9 10
Taxation assumptions
Tax rate Taxation_Rate
Tax creditor days Tax_Creditor_Days
Profit adjustments Profit_Adjustments
Losses account
Opening losses - 0 0 0 0 0 0 0 0 0
Increase in losses in the period 0 0 0 0 0 0 0 0 0 0
Losses utilised 0 0 0 0 0 0 0 0 0 0 Losses_Utilised
Closing losses 0 0 0 0 0 0 0 0 0 0
Losses account
Opening losses - 0 0 0 0 0 0 0 0 0
Increase in losses in the period 0 0 0 0 0 0 0 0 0 0
Losses utilised 0 0 0 0 0 0 0 0 0 0
Closing losses 0 0 0 0 0 0 0 0 0 0
Financial results
Financial results
Profit and loss
This chapter contains the financial results from the model.
Balance sheet
Ratios
Valuation
Year 1 2 3 4 5 6 7 8 9 10
0 0 0 0 0 0 0 0 0 0 0
Total revenue 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
Total cost of sales 0 0 0 0 0 0 0 0 0 0
Gross profit 0 0 0 0 0 0 0 0 0 0
Bad debt 0 0 0 0 0 0 0 0 0 0
Staff dosts 0 0 0 0 0 0 0 0 0 0
Rent 0 0 0 0 0 0 0 0 0 0
Light and heat 0 0 0 0 0 0 0 0 0 0
Advertising 0 0 0 0 0 0 0 0 0 0
Legal and professional 0 0 0 0 0 0 0 0 0 0
Telephone, fax and IT 0 0 0 0 0 0 0 0 0 0
Stationery 0 0 0 0 0 0 0 0 0 0
Leasing of equipment 0 0 0 0 0 0 0 0 0 0
Travel and subsistence 0 0 0 0 0 0 0 0 0 0
Total operating costs 0 0 0 0 0 0 0 0 0 0
Operating profit 0 0 0 0 0 0 0 0 0 0
Depreciation 0 0 0 0 0 0 0 0 0 0
Amortisation 0 0 0 0 0 0 0 0 0 0
Taxation 0 0 0 0 0 0 0 0 0 0
Year 1 2 3 4 5 6 7 8 9 10
Debtors 0 0 0 0 0 0 0 0 0 0 0
Debtors 0 0 0 0 0 0 0 0 0 0 0
Stock 0 0 0 0 0 0 0 0 0 0 0
Stock 0 0 0 0 0 0 0 0 0 0 0
Cash at bank 0 0 0 0 0 0 0 0 0 0 #VALUE!
Total current assets 0 0 0 0 0 0 0 0 0 0 #VALUE!
Creditors 0 0 0 0 0 0 0 0 0 0 0
Creditors 0 0 0 0 0 0 0 0 0 0 0
Capital expenditure creditor 0 0 0 0 0 0 0 0 0 0 0
Intangible expenditure creditor 0 0 0 0 0 0 0 0 0 0 0
Taxation creditor 0 0 0 0 0 0 0 0 0 0 0
Overdraft 0 0 0 0 0 0 0 0 0 0 #VALUE!
Total current liabilities 0 0 0 0 0 0 0 0 0 0 #VALUE!
Equity 0 0 0 0 0 0 0 0 0 0 0
Retained profits 0 0 0 0 0 0 0 0 0 0 #VALUE!
Debt 0 0 0 0 0 0 0 0 0 0 0
Check 0 0 0 0 0 0 0 0 0 0 #VALUE!
Year 1 2 3 4 5 6 7 8 9 10
Debtors 0 0 0 0 0 0 0 0 0 0
Debtors 0 0 0 0 0 0 0 0 0 0
Stock 0 0 0 0 0 0 0 0 0 0
Stock 0 0 0 0 0 0 0 0 0 0
Creditors 0 0 0 0 0 0 0 0 0 0
Creditors 0 0 0 0 0 0 0 0 0 0
Movement in working capital 0 0 0 0 0 0 0 0 0 0
Equity issued 0 0 0 0 0 0 0 0 0 0
Debt issued 0 0 0 0 0 0 0 0 0 0
Debt repaid 0 0 0 0 0 0 0 0 0 0
Cash account
Opening cash balance 0 0 0 0 0 0 0 0 0 0
Cash movement in the year 0 0 0 0 0 0 0 0 0 #VALUE!
Closing cash balance 0 0 0 0 0 0 0 0 0 #VALUE!
Year 1 2 3 4 5 6 7 8 9 10
Profitability
Gross profit margin 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Operating profit margin (EBITDA margin) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Profit before tax margin (PBT margin) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Earnings Per Share (EPS) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Returns
Return on average capital employed (ROACE) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Return on total average assets (ROTAA) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% #VALUE!
Return on equity (ROE) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% #VALUE!
Dividend cover 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 #VALUE!
Financial
Gearing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% #VALUE!
Debt - equity ratio 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% #VALUE!
Interest cover 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Year 1 2 3 4 5 6 7 8 9 10
Valuation assumptions
Discount rate Discount_Rate
Terminal value growth rate Terminal_Value_Rate
EBITDA exit multiple EBITDA_Exit_Multiple
Discount factor
Discount factor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Discount_Factor
Terminal value
Method 1: Terminal value growth rate Method 2: EBITDA exit multiple
Final year cash flow 0 Final year EBITDA 0
Final year cash grown 1 year by growth rate 0 Final year company value 0
Perpetuity calculation 0
NPV of final sash flow to perpetuity 0
Terminal value - method 1 0 Terminal value - method 2 0
Equity value 0 0