Financial Statement Modelling Flashcards
What factors are forecast sales affected by? (5)
- Degree of Competition
- Planned Advertising Expenditure
- Quality of Products and Services
- Changes in consumer tastes
- General State of the Economy
What are the Sales worth in year y given a growth rate of x?
Initial Sales * (1+x)y
What is the total value of COGS formula?
Sales * COGS/Sales (sales * avg COGS)
What is the total value of interest payments on debt?
Interest rate on debt * average debt over the year
What is the total value of Interest earned on cash and marketable securities?
Interest rate on cash * average cash and marketable securities over the year
What is the total value of Depreciation?
Depreciation rate * average fixed assets at cost over the year
How to calculate Profits before tax?
Sales - Cost of goods sold - Interest payments on debt + Interest earned on cash and marketable securities - Depreciation
What is the total value of taxes?
Tax rate * Profit before taxes
What is Profits after taxes?
Profits before taxes - taxes
What is the total value of dividends?
Dividend payout ratio * Profit after taxes
What is the retained earnings?
Profit after taxes - dividends
What is Free Cash Flow?
The amount of cash that could be withdrawn from a firm without harming its ability to operate and to produce future cash flows.
Enterprise Value = ∑(FCF/1+WACC)
