Current Ratio

Liquidity is the ability of a business to utilize its short term assets such as cash, accounts receivable and inventories, to pay its short term liabilities when they fall due. The current ratio, used in the financial projections template is one indicator of liquidity.

Current Ratio October 5th, 2016Team
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Financial Ratios Analysis

When developing financial projections for your business plan it is useful to monitor the financial ratios produced so that they can be compared with other available data. By making the comparisons it is possible to see whether your financial projections are in line with industry, competitor, and if available, historical data. If the financial ratio comparisons reveal unexplained variations then the assumptions in the plan need to be improved and fine tuned to bring the projections in line with expectations.

Financial Ratios Analysis October 5th, 2016Team
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DuPont Return on Equity Formula

On its own the return on equity formula tells you very little about how the business managed to make the return. In order to do this a technique called DuPont analysis is applied to the return on equity formula, which basically involves separating out the various aspects of the business to show how they have an impact on the equity return.

DuPont Return on Equity Formula October 5th, 2016Team
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Return on Equity

The return on equity (ROE) is used to measure the percentage rate of return the owner of a business gets on their invested equity.

The return on equity measures the ability of a business operation to use its money to generate earnings. It is calculated by dividing the net income by the owners equity.

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Operating Cycle

All businesses have an operating cycle, it is the time in days between purchasing inventory and receiving the cash from the sale of that inventory on credit to customers.

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CAGR Calculator

This CAGR calculator will help a business calculate the compound annual growth rate for an investor based on entering the exit year and multiple required.

CAGR Calculator October 7th, 2016Team
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Inventory Days Calculator

Inventory represents the total of raw materials, work in process, and finished goods that a business holds for the purpose of resale.

Inventory days is calculated using the inventory days formula and shows the average number of days sales a business is holding in stock.

The Excel inventory days calculator, available for download below, calculates the inventory days by entering details of cost of sales, number of days in the accounting period, and the inventory balance.

Inventory Days Calculator May 23rd, 2017Team
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Days Payable Outstanding Calculator

Accounts payable represent amounts owed by a business for goods purchased on account from its suppliers.

Days payable outstanding is calculated using the days payable outstanding formula and shows the average number of days the business is taking to pays its suppliers for purchases on account.

The Excel days payable outstanding calculator, available for download below, calculates the days payable outstanding by entering details of cost of sales, number of days in the accounting period, and the accounts payable balance.

Days Payable Outstanding Calculator October 5th, 2016Team
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Days Sales Outstanding Calculator

Accounts receivable represent amounts owed to a business for goods sold on account to customers.

Days sales outstanding (dso) is calculated using the days sales outstanding formula and shows the average number of days the customers are taking to pay the business for sales made to them on account.

The Excel days sales outstanding (dso) calculator, available for download below, calculates the days of sales outstanding by entering details of sales, number of days in the accounting period, and the accounts receivables balance.

Days Sales Outstanding Calculator October 5th, 2016Team
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Altman Z Score Calculator Model

The Z score Altman model takes five key accounting ratios for a business, and using the Altman Z score formula weights them according to an industry type, and combines them into a single score (the Z score) to give an indication of the financial health of a business.

Altman Z Score Calculator Model May 12th, 2017Team
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Break Even Calculator

The Excel break even analysis calculator, available for download below, allows for up to four different options or scenarios to be considered at a time.

For each option, the unit selling price and cost price are entered and the gross margin and gross margin percentage are calculated. By entering a value for the fixed costs of the business, the break even revenue and the break even units are calculated.

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PE Multiple Valuation

The PE multiple valuation or PE ratio valuation technique can be used to provide a rough valuation of the equity of a business based on its earnings after interest, tax and depreciation.

The price earnings ratio calculation formula is given a follows:

PE Multiple Valuation October 5th, 2016Team
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