Supermarket Financial Model presents the business case of an already operating supermarket/grocery chain business. The model generates the three financial statements (profit & loss, balance sheet, and cash flow), the company valuation using the free cash flows to the firm and dividend discount method, ratios, and various graphs.
So, a quick overview of the model, in the contents tab you can see the structure of the model and by clicking on any of the headlines to be redirected to the relevant worksheet.
On the manual tab, you can feed the general information for the model such as: model name, responsible, timeline of the model, and date & currency conventions.
Additionally, there is a description of the color-coding of the model in the same tab. Inputs are always depicted with a yellow fill and blue letters, call up (that is direct links from other cells) are filled in light blue with blue letters while calculations are depicted with white fill and black characters.
There is also color coding for the various tabs of the model. Yellow tabs are mostly assumptions tabs, grey tabs are calculations tabs, blue tabs are outputs tabs (that is effectively results or graphs) and finally, light blue tabs are admin tabs (for example: the cover page, contents, and checks).
Moving on to the inputs tab, you can adjust the various assumptions of the model based on the specifications and requirements of your business (in yellow whatever can be amended as an assumption). So effectively, you can adjust a set of inputs such as the number of stores, size per store, clients per store, average basket per client, online sales.
Afterward, you can set the inflation on costs, the average basket cost margin, labor costs at a store level and at headquarter level, other operating costs (both fixed and variable).
Moving on, the user can set the interest rate on debt, the income tax rate, and the dividend payout ratio.
Regarding the balance sheet, several inputs need to be filled such as: the depreciation as a percentage of the acquisition costs, the CAPEX to sales ratio, the days inventory outstanding, the days sales outstanding, the overdraft interest, the loan repayment schedule per year, as well as the days payable outstanding and the growth rate to perpetuity.
The user also needs to fill the inputs relevant to the historic (Actuals) period in columns I.
The calculations follow the same logical flow as in the inputs tab. As already mentioned, no inputs from the user are needed here, as all the inputs are fed in the yellow cells on the assumptions tab.
The calculations are separated into revenues, expenses, gross profit, labor costs, and operating costs, EBITDA, non-operating costs, Non-Current Assets, Current Assets, Equity and Liabilities, and finally a cash flow calculation.
On the Statements tab, the profit and loss, balance sheet, and cash flow statements are calculated, with the relevant checks to make sure everything balances.
The Weighted average cost of capital is also calculated based on the corresponding user inputs.
The Valuation tab performs the valuation of the company based on the free cash flows to the firm and the dividend discount model. Sensitivities table have also been implemented on the equity value of the company, which can be updated with F9.
The most important ratios are presented in this tab, where a series of ratios are presented and formatted accordingly based on their trends over the historic and forecast period.
Additionally, on the Graphs tab, a series of charts are presented: Stores per Region, Store Size, Average Basket Price and Constituents, Store Size and Regions contribution to the Revenues, profitability metrics and margins, working capital, assets, liabilities, and equity, operating cash flows, investment and financing cash flows, cash inflows, free cash flows to the firm, valuations, and sensitivities on equity value.
Finally, the checks tab where the most critical checks are aggregated. Whenever you see an error message on any page, you should consult this page to see where the error is coming from.