A selection of free financial model calculators for use with our main financial projections template.
Tag: Cash flow
Industry Specific Financial Model Templates
A listing of our Industry specific financial model templates. The output from these templates is a useful starting point for our main Financial Projections Template.
Startup Death Valley Curve
The startup valley of death curve or startup J curve plots the cash balance of a business against time. A lean startup business can be identified by the shape of its curve during the bootstrapping period.
IRR Calculator Excel
The IRR or internal rate of return is a means of evaluating a project by finding the discount rate at which the net present value of the cash flows from the project is equal to zero.
This IRR financial calculator is used by entering cash outflows as a negative number and cash inflows as a positive number. Year 0 is the start of the project and usually represents the initial investment and is normally a negative cash flow. The following years represent cash flows at the end of that year.
Links Between Financial Statements in a Business Plan
The financial projections template produces an income statement, balance sheet and cash flow statement for the business. These 3 financial statements appear initially to be unconnected; however, closer investigation shows that they are linked and a change in one statement substantially impacts the other statements. The entrepreneur need to understand these connections in order to be able to understand the financial performance of the business.
Understanding Cash Flow Statements in Startups
An understanding of the cash flow statement allows the startup entrepreneur to manage the cash flow of a business effectively. In doing so they will avoid many of the cash flow problems which can damage or even destroy what would have been a successful startup operation.
Discounted Cash Flow Valuation Calculator
The free cash flow valuation calculator can be used to value the operations of a startup up business. The calculator uses the free cash flow generated by the business and discounts this at its weighted average cost of capital.
Capital Expenditure Model in Financial Projections
Capital expenditure is a necessary part of operating a business and is included in the cash flow statement of the financial projections template. This capex model allows those costs to be estimated in detail and summarized.
Estimate New Capital
New equity capital is included in the cash flow statement of the projection as a positive figure as it represents cash flowing into the business from investors. For example, if in year two the plan inject new capital of 5,000 to finance the purchase of new machinery, the figure of 5,000 should be included in the cash flow statement on the proceeds from the issue of new share capital line.
Cash Flow vs Profit
A business needs to understand that there is a difference between profit and cash. Eventually a business needs to be able to make a profit, however, providing it is properly financed and has adequate cash flow a business can survive for a considerable period of time without profits.
Cash Conversion Cycle Calculator
The cash conversion cycle calculator works out the number of days in the cash cycle of a business. It estimates the level of inventory, accounts receivable, and accounts payable needed for a given level of trading operations and determines the funding required to finance working capital.
Cash Conversion Cycle Formula
All businesses have a cash conversion cycle, it is the time in days between paying for inventory and receiving the cash from the sale of that inventory from customers. The cash conversion cycle formula can be used to calculate the number of days.