| The
model contains detailed backup information in many sectors. Not all of these
options are available in the Light and Basic versions. |
| |
• Sales model:
revenue and sales units segmented by products & product families, and by
geographic locations.
Product support contracts,
installed base. |
| − Optional scenarios: You
can specify three scenarios (typically low, medium, high) for sales. |
| − Optional sales funnel:
Includes qualified leads of varying quality, order backlog, and conversion
rates. |
• Production model:
computes production units and cost of goods based on projected sales and
desired
inventory levels. Cost of goods is
composed of direct material, direct labor, and purchased services.
Includes several optional features: |
| − Tracks several types of direct labor, with $/hour,
hours/prouction unit. |
− Tracks direct labor headcount, labor utilization, and
overtime. You can set headcount directly, or specify
a target labor utilzation and let
the model compute the headcount. |
| − Production "learning curve" cost reductions that
optionally lower prices |
• Operating expense model: tracks indirect labor expense, facilities expense, admin and
other expenses.
You explicitly specify expenses in
the early quarters. |
− Optional: Computes later direct labor headcount and expense
with Cobb-Douglas formulas of the form
Headcount or Expense = Constant *
Revenue ^ Exponent. |
• Financial expense and tax model: short and long-term debt and interest rates, interest on cash
balances,
income tax rates and tax loss
carried forward. |
• Asset model:
includes cash, accounts receivable, inventory units and value (LIFO
accounting) by product,
debt, asset purchases and
depreciation. |
| • Liability model:
includes accounts payable, short-term debt, leases, long-term loans, and
bonds. |
| • Equity model:
includes paid-in capital, retained earnings, dividends, and internal rate of
return. |
• Valuation model:
values the business based on the present value of future net income,
including a simple
income model after the end of
model time. |
| |
| The model includes these software features. |
| |
| • Time grains in
most reports change over time: quarters with annual sums at early times and
years later. |
• Excel graphs of key variables. These graphs are integrated
into the FinModel model from which they get
their source data. You can add
more graphs, and optionally import them into FinModel. |
| |
| This model containas "Features" that can be separately
turned on or off in FinModel. Not all of these features are avaiable in the
Light or Basic versions of this template. |
| • Three scenarios for low, medium, and high revenue |
| • Sales returns and associated expenses |
| • Advanced
methods for using revenue to drive heacount and various expenses that include
scale effects |
| • Annuity bonds with sale date, face value, interest rate, and
balloon payments |
| • Tagged long-term assets with various depreciation methods (for
major assets), and untagged long-term assets |
• Valuation of
the company based on its cash flows, including a "tail" cash flow
beyond the end of model time,
using a specified discount rate, or
one computed by the Capital Asset Pricing Model |
| • Computation of
an internal rate of return (IRR) |