PURPOSE OF TOOL
Highly versatile and user-friendly Excel model for the preparation a 5-year rolling 3 statement (Income Statement, Balance Sheet, and Cashflow Statement) financial projection with a monthly timeline for a startup or existing hydroponics business generating revenue by growing plants or vegetables without soil, by using mineral nutrient solutions in an aqueous solvent.
The model allows the user to model up to 10 product categories and 10 variable costs categories as well as other income, staff costs, other operating costs, fixed assets, and borrowings.
The model follows good practice financial modeling principles and includes instructions, line item explanations, checks, and input validations, and incorporates a discounted cash flow valuation calculation using the projected cash flows.
The key outputs include:
– Projected full financial statements (Income Statement, Balance Sheet, and Cashflow Statement) presented on a monthly basis across up to 5 years and summaris3333ed on an annual basis.
– Dashboard with:
o Summarised projected Income Statement and Balance Sheet;
o Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item;
o List of key ratios including average revenue growth, average profit margins, the average return on assets and equity, and average Debt to Equity ratio;
o Bar charts summarising income statement and balance sheet projections;
o Revenue and gross profit by produce category presented in a table, pie-chart, and bar-chart format
– Discounted cash flow valuation using the projected cash flow output.
Inputs are split into income statement and balance sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.
– Name of business;
– First projection year and month;
– Naming for product categories, variable cost categories, staff costs, operating costs, fixed assets, and borrowings;
– Sales tax applicability for produce categories, variable costs, other expenses, and fixed assets.
– Opening balance sheet (for existing businesses);
– Income Statement actuals (for trend analysis);
– Produce revenue inputs including square meters used, plants per square meter, Yield per square meter, harvests per year, and price per kg;
– Variable cost inputs including cost per square meter or kg produced or kg sold or plant;
– Staff cost inputs including staff numbers, average salary per full-time position, average employer’s social security percentage of salary, average annual bonus and bonus payment months;
– Other operating costs inputs;
– Sales and corporate tax inputs including rate and payment periods;
– Dividend inputs including amount (percentage of retained earnings) and frequency;
– Fixed assets including addition amounts and useful life;
– Borrowings including addition amounts and interest rate;
– Share capital additions;
– Discount rate inputs (for valuation calculation).
The model comprises of 9 tabs split into input (‘i_’), calculation (‘c_’), output (‘o_’) and system tabs. The tabs to be populated by the user are the input tabs (‘i_Setup’, ‘i_Actuals’ and ‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the project outputs which are presented in ‘o_Fin Stats’, ‘o_Charts’ and ‘o_DCF’.
System tabs include:
– A ‘Front Sheet’ containing a disclaimer, instructions, and contents;
– A checks dashboard containing a summary of checks by tab.
Other key features of this model include the following:
– The model follows good practice financial modeling guidelines and includes instructions, line item explanations, checks, and input validations;
– The model contains a flexible timeline that allows for a mix of actual and forecast period across a 5-year period. This allows projections to be easily rolled forward as forecast periods become actual period;
– Timeline is split on a monthly basis and summarised on an annual basis;
– The model allows the user to model up to 10 produce categories with their own unique variable cost setup;
– The model is not password protected and can be modified as required following download;
– The model is reviewed using specialized model audit software to help reduce the risk of formula inconsistencies;
– The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Produce categories – 10 categories;
o Variable costs – 10 categories;
o Other Income – 3 categories;
o Staff costs – 8 categories;
o Admin expenses – 15 categories;
o Fixed assets – 5 categories;
o Borrowings – 3 facilities
– Apart from projecting revenue and costs the tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends, and corporate tax;
– Business name, currency, starting projection period are fully customizable;
– Revenue, cost, and fixed asset descriptions are fully customizable;
– The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
– The model includes instructions, line item explanations, checks, and input validations to help ensure input fields are populated accurately;
– The model includes a checks dashboard that summarises all the checks included in the various tabs making it easier to identify any errors.
If you require any bespoke modifications to the tool, we are more than happy to assist with this. Please contact us on [email protected]
We are a small team of financial modeling professionals with experience working in big 4 business modeling teams and strong experience supporting businesses with their financial planning and decision support needs. Our aim is to provide robust and easy-to-use tools that follow good practice financial modeling guidelines and assist individuals and businesses with common financial planning and analysis processes.
We are keen to make sure our customers are satisfied with the tools/models they purchase and will be more than happy to assist with any questions or support required following or in advance of purchase.
We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review.