PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing medical clinic/healthcare business generating revenue by providing medical services/treatments to patients.
The model allows the user to model up to 15 categories of medical services (can be extended) each with its own mix of direct staff, direct medical supplies, and direct expense requirements. Apart from revenue and direct costs, the model allows the user to model indirect staff costs, marketing costs, other administrative costs, fixed assets, medical supply inventories, receivables/payables, borrowings, sales tax impacts, corporate tax, and dividend distributions.
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.
– Projected full financial statements (Income Statement, Balance Sheet, and Cash flow Statement) presented on a monthly basis across up to 5 years and summarised 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, average return on assets and equity, and average Debt to Equity ratio;
o Bar charts summarising income statement and balance sheet projections;
o Revenue by medical service category and volume of services offered over time presented in a table, pie-chart, and bar-chart format
– Discounted cash flow valuation using the projected cash flow output.
– Breakeven analysis
– Name of business;
– First projection year and month;
– Naming for medical service categories, (in)direct staff, direct materials, direct expenses, marketing costs, staff costs, admin costs, fixed assets, and borrowings;
– Sales tax applicability for products, direct costs, and other expenses and fixed assets.
– Opening balance sheet (for existing businesses);
– Income Statement actuals (for trend analysis);
– Medical service revenue inputs including opening hours, volume of services, price per service, hours per service, the settlement period
– Staff cost inputs including working hours, direct staff required per medical service, average salary per full-time position, average employer’s social security percentage of salary, average annual bonus, and bonus payment months.
– Direct material inputs including units per medical service, cost per unit, safety stock %, average credit terms received;
– Direct expense inputs including direct expense per medical service;
– Other costs inputs including marketing costs and admin costs;
– Sales and corporate tax inputs including rate and payment periods;
– Dividend inputs including amount (percentage of retained earnings) and frequency;
– Fixed assets including additional 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 projection outputs which are presented in ‘o_Fin Stats’, ‘o_Dashboard’, and ‘o_DCF’.
– 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 periods 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 15 separate medical service categories with their own unique direct 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;
– Apart from projecting revenue and costs the model 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 vali