PURPOSE OF TOOL

Highly versatile and user-friendly Excel model for the preparation of a 50-year 3 statement (Income Statement, Balance Sheet, and Cashflow Statement) financial projection with a yearly timeline for an orchard / Crop farming business generating revenue through the growing and selling of produce.

The model allows the user to model the production and sale of up to 8 orchards or crop produce across 2 scenarios. The model includes 10 variable cost items that can be calculated on produce quality, sale quantity, or land area.

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.

KEY OUTPUTS

The key outputs include:
– Projected full financial statements (Income Statement, Balance Sheet, and Cashflow Statement) presented on a yearly basis for up to 50 years.
– 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 Gross Profit margin by produce type in a table and bar-chart format
– Discounted cash flow valuation using the projected cash flow output.

KEY INPUTS

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.

Setup Inputs:
– Name of business;
– Currency;
– First projection year;
– Naming for produce categories, variable cost categories, establishment costs, staff costs, other expenses, fixed assets, and borrowings;
– Sales tax applicability for products, variable costs, other income and expenses, and fixed assets.

Projection Inputs:
– Revenue inputs including acres used, yield per acre, weight per buschel, price per kg, percentage of produce sold.
– Variable cost inputs including cost per unit which can either be based on produce quality, sale quantity, or land area;
– Other costs inputs including staff costs, establishment costs, and other expenses;
– 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).

MODEL STRUCTURE

The model comprises of 10 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_Assump_S1’, and ‘i_Assump_S2’). The calculation tab uses the user-defined inputs to calculate and produce the projected 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.

KEY FEATURES

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 yearly timeline that is automatically updated based on starting projection year selected;
– The model allows the user to model up to 8 produce categories (4 fruit and 4 vegetable) 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 – 8 categories;
o Variable cost categories – 10 categories;
o Staff costs – 5 categories;
o Establishment costs – 5 categories;
o Other expenses – 15 categories;
o Fixed assets – 15 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 allows the user to model 2 separate scenarios with own projected financial statement, valuation, and dashboard outputs;
– 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.

MODIFICATIONS

If you require any bespoke modifications to the tool, we are more than happy to assist with this. Please contact us at: [email protected]

ABOUT PROJECTIFY

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.