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 vending machine business generating revenue by providing products for sale in a number of vending machines in one or more locations.
The model allows the user to model up to 20 categories of vending machines, each with their own mix of customer numbers, average spend, cost of sales, buy or rent costs, and additional fees. Apart from vending machine revenue and cost of sales, the model allows the user to model staff costs, marketing costs, other administrative costs, fixed assets, inventories, payables, borrowings, sales tax impacts, corporate tax, and dividend distributions.
The model follows good practice financial modelling 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 Cash flow Statement) presented on a monthly basis across up to 5 years and summarised on an annual basis.
- Dashboard with:
- Summarised projected Income Statement and Balance Sheet;
- Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item;
- List of key ratios including average revenue growth, average profit margins, average return on assets and equity, and average Debt to Equity ratio;
- Bar charts summarising income statement and balance sheet projections;
- Revenue and gross profit by vending machine category and volume of transactions over time are presented in a table chart format.
- Charts and graphs showing: cash balance by month, free cash flow generation, cash flow statement breakdown, profit margins, income statement breakdown, net cash vs. net income, working capital, valuation, and capital structure.
- Discounted cash flow valuation using the projected cash flow output.
- Breakeven analysis
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 and month;
- Naming for vending machine categories, staff costs, marketing costs, admin costs, fixed assets and borrowings;
- Sales tax applicability for services, products, direct costs, and other expenses and fixed assets.
Actuals Inputs:
- Opening balance sheet (for existing businesses);
- Income Statement actuals (for trend analysis);
Projection Inputs:
- Vending Machine revenue including number of transactions, average spend, start date (if new)
- Vending machine expenses, including cost of sales, safety stock %, average credit terms received; proprietor fees, payment fees, rental costs and/or purchase cost, and useful life.
- 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 cost 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 addition amounts and useful life;
- Borrowings, including addition amounts and interest rates;
- Share capital additions;
- Discount rate inputs (for valuation calculation).
MODEL STRUCTURE
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’.
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 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 periods;
- Timeline is split on a monthly basis and summarised on an annual basis;
- The model allows the user to model up to 20 separate vending machine categories, each 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;
- The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
- Vending Machine categories – 20 categories;
- Staff costs – 5 categories;
- Marketing costs – 5 categories;
- Other expenses – 15 categories;
- Fixed assets – 5 categories;
- Borrowings – 3 facilities
- 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, and 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.
MODIFICATIONS
If you require any be-spoke modifications to the tool, we are more than happy to assist with this. Please contact us using the Contact Author button on the lower right sidebar, or you can also contact the support team for assistance.
ABOUT PROJECTIFY
We are financial modelling professionals with experience working in Big 4 business modelling 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 modelling guidelines and assist individuals and businesses with their financial projection and analysis requirements.
We are keen to ensure our customers are satisfied with the models they purchase and will be more than happy to assist with any questions or support required.
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.
The post Vending Machine Business 5-Year 3 Statement Financial Projection Model first appeared on eFinancialModels.