Prepared for 5 December 218 Page 1/22
Data Reporting Period Period End 3-6-215 3-6-216 3-6-217 3-6-218 Period Length (months) 12 12 12 12 Profit & Loss Revenue 3,4, 5,, 5,8, 6,612, Gross Margin ($) 865, 1,3, 1,65, 1,917,5 Operating Profit 36, 467, 625, 71,3 Net Profit (After Tax) 195,4 28, 35, 41, Other Information Depreciation & Amortisation 74, 1, 1, 1, Interest Paid 5, 1, 15, 176, Extraordinary Income/Expenses Distributions/Dividends 45,4 18, 1, 15, Balance Sheet Assets Total Assets 2,7, 3,6, 4,45, 5,14, Cash 16, 75, Accounts Receivable 57, 9, 1,2, 1,443, Inventory 6, 92, 1,25, 1,55, Total Current Assets 1,5, 2,1, 2,5, 3,64, Fixed Assets 1,, 1,4, 1,8, 1,8, Liabilities Total Liabilities 2,, 2,8, 3,4, 3,74, Accounts Payable 3, 45, 5, 59, Total Current Liabilities 8, 1,6, 2,15, 2,454, Funding Bank Loans - Current 4, 1,, 1,45, 1,643, Bank Loans - Non Current 1,, 1,2, 1,2, 1,2, Page 2/22
Summary Your Profit Story Revenue $6,612, - COGS Gross Margin = - Overheads = $4,694,5 $1,917,5 $1,216,2 Operating Profit $71,3 Current Period Movement Revenue 6,612, +812, Gross Margin % 29. +.55 Operating Profit % 1.61 -.17 Net Profit % 6.2 +.17 Your Balance Sheet Story Equity $1,31, Current Assets Non Current Assets Current Liabilities = + - - $3,64, $1,95, $2,454, Non Current Liabilities $1,25, Current Period Movement Accounts Receivable Days 79.66 +4.14 Inventory Days 12.51 +1.57 Accounts Payable Days 45.87 +1.9 Working Capital Days 154.3 +12.82 Page 3/22
Your Cash Flow Story 3,2, 2,4, 1,6, 8, 4, 1,, 1,, 1,45, 1,643, 1,2, 1,2, 1,2, Bank Loans - Current Bank Loans - Non Current Total Debt 3-6-215 Total Debt 3-6-216 Total Debt 3-6-217 Total Debt 3-6-218 Current Period Movement Cash Bank Loans - Current 1,643, +193, Bank Loans - Non Current 1,2, Net Cash Flow -193, N/A Page 4/22
Chapter 1 Profitability Revenue Gross Margin Operating Profit Retained Profit 6,612, 1,917,5 71,3 26, up by 812, up by 267,5 up by 76,3 up by 1, Profitability Trends 32 24 16 8 25.4 26. 28.4 29. 1.6 9.3 1.8 1.6 5.7 5.6 6. 6.2 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period Gross Margin % Operating Profit % Net Profit % Revenue Growth vs COGS Growth 6 45 47.1 46. 3 15 16. 12.2 14. 13.1 Revenue Growth % COGS Growth % 3-6-216 3-6-217 3-6-218 Page 5/22
Revenue Growth vs Overheads Growth 8 6 4 2 47.1 65. 16. 23. 14. 18.7 Revenue Growth % Overheads Growth % 3-6-216 3-6-217 3-6-218 Profitability Ratios Chapter 1 - Profitability 3-6-217 3-6-218 Movement Revenue 5,8, 6,612, 812, Revenue Growth % 16. 14. -2. Gross Margin 1,65, 1,917,5 267,5 Gross Margin % 28.45 29..55 Overheads 1,25, 1,216,2 191,2 Overheads % 17.67 18.39.72 Operating Profit 625, 71,3 76,3 Operating Profit % 1.78 1.61 -.17 EBITDA 725, 81,3 76,3 Net Profit 35, 41, 6, Net Profit % 6.3 6.2.17 Retained Profit 25, 26, 1, Interest Cover 4.17 3.98 -.19 Page 6/22
Chapter 2 Working Capital Accounts Receivable Inventory Accounts Payable Working Capital 1,443, 1,55, 59, 2,43, up by 243, up by 3, up by 9, up by 453, Working Capital Trends 16 12 8 4 43 44 44 46 86 91 11 121 61 66 76 8 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period Accounts Payable Days Inventory Days Accounts Receivable Days Page 7/22
Working Capital Timeline This Period Day Day 46 Day 121 Day 21 154 Inventory arrives Creditors paid Inventory sold Cash banked Working Capital Days Last Period -186,596 Cash Impact Day Day 44 Day 11 Day 186 141 Inventory arrives Creditors paid Inventory sold Cash banked Working Capital Days Working Capital per $1 Inventory $1,55, Receivables + - $1,443, Payables $59, = Working Capital 36 Inventory 23 Receivables 22 Payables 9 Revenue $6,612, For each additional $1 of Revenue You invest $36 in Working Capital Page 8/22
Investment in Working Capital per $1 32 24 16 8 9 9 9 9 18 18 22 23 17 18 21 22 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period Accounts Payable Inventory Accounts Receivable Gross Margin vs Working Capital per $1 4 3 2 25 26 26 27 28 34 29 36 Gross Margin Working Capital 1 3-6-215 3-6-216 3-6-217 3-6-218 Working Capital Ratios Chapter 2 - Working Capital 3-6-217 3-6-218 Movement Accounts Receivable Days 75.52 79.66 4.14 Inventory Days 19.94 12.51 1.57 Accounts Payable Days 43.98 45.87 1.9 Working Capital Days 141.48 154.3 12.82 Working Capital 1,95, 2,43, 453, Working Capital per $1 33.62 36.34 2.72 Working Capital Turnover 2.97 2.75 -.22 Marginal Cash Flow -5.17-7.34-2.17 Current Ratio 1.16 1.25.9 Page 9/22
Chapter 3 Other Capital Fixed Assets Other Assets Other Liabilities Other Capital 1,8, 221, 271, 1,75, - up by 21, up by 21, - Return on Capital Trends 18.56 15.97 16.89 16.89 1.59 9.34 1.78 1.61 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period 1.75 1.71 1.57 1.59 Operating Profit % Asset Turnover Return on Capital % Return on Capital % Operating Profit % Asset Turnover Return on Capital % Operating Profit Revenue Operating Profit $71,3 $6,612, $71,3 x = = 16.89% Return on Capital Revenue $6,612, Working Capital $2,43, + Other Capital $1,75, Net Operating Assets $4,153, Chapter 1 Chapter 2 Chapter 3 Page 1/22
Other Capital Ratios Chapter 3 - Other Capital 3-6-217 3-6-218 Movement Other Capital 1,75, 1,75, Other Capital % 3.17% 26.47% -3.71 Other Capital Turnover 3.31 3.78.46 Net Operating Assets 64 63 453, Net Operating Assets % 63.79% 62.81% -.98 Asset Turnover 1.57 1.59.2 Return on Capital % 16.89% 16.89% -.1 Return on Total Assets % 14.4% 13.99% -.6 Return on Equity % 33.33% 31.3% -2.4 Page 11/22
Chapter 4 Funding Cash Total Debt Equity Total Funding 2,843, 1,31, 4,153, - up by 193, up by 26, up by 453, Funding Trends 1.4M 2.2M 2.65M 2.84M 7K 8K 1.5M 1.31M 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period 16K 75K Cash Total Debt Equity Page 12/22
Your Funding + Cash Flow - Cash Flow Chapter 1 Profit 26, Chapter 2 Working Capital Invested 453, Chapter 3 Other Capital Total 26, 453, Your business requires $ 193, of borrowings to fund the shortfall Your Equation Equity $1,31, Net Debt Working Capital + = + $2,843, $2,43, Other Capital $1,75, Funding Net Operating Assets Page 13/22
Profit vs Cash Flow Profit Cash Flow Variance Revenue 6,612, Cash from Customers 6,369, -243, COGS 4,694,5 Cash to Suppliers 4,94,5-21, Gross Margin 1,917,5 Gross Cash Profit 1,464,5-453, Overheads excl Depreciation 1,116,2 Overheads excl Depreciation 1,116,2 - Operating Cash Profit 81,3 Operating Cash Flow 348,3-453, Other Cash Outflow Interest Paid -176, Interest Paid -176, Tax Paid -115,3 Tax Paid -115,3 Extraordinary Income Extraordinary Income Distributions/Dividends Paid -15, Distributions/Dividends Paid -15, Depreciation & Amortisation -1, Fixed Assets Acquired -1, Other Net Assets Increased Capital Introduced Retained Profit 26, Net Cash Flow -193, Operating Cash Profit vs Operating Cash Flow 9, 675, 45, Operating Cash Profit Operating Cash Flow 225, 3-6-216 3-6-217 3-6-218 Page 14/22
Funding Ratios Chapter 4 - Funding 3-6-217 3-6-218 Movement Marginal Cash Flow -5.17-7.34-2.17 Operating Cash Flow 145, 348,3 23,3 Operating Cash Profit 725, 81,3 76,3 Net Cash Flow -525, -193, 332, Net Debt 2,65, 2,843, 193, Debt to Equity 2.52 2.17 -.35 Debt to Capital.72.68 -.4 Interest Cover 4.17 3.98 -.19 Debt Payback 3.66 3.55 -.11 Page 15/22
Power of One Your Power of One Net Cash Flow Operating Profit Your Current Position -193, 71,3 Your Power of One Impact on Cash Flow Impact on Operating Profit Price Increase % 1 % 51,69 66,12 Volume Increase % 1 % -4,855 19,175 COGS Reduction % 1 % 56,545 46,945 Overheads Reduction % 1 % 12,162 12,162 Reduction in Accounts Receivable Days 1 days 18,115 Reduction in Inventory Days 1 days 12,862 Increase in Accounts Payable Days 1 days 12,862 Your Power of One Impact 159,381 144,42 Net Cash Flow Operating Profit Your Adjusted Position -33,619 845,72 Your Power of One Impact 9, 6, 3, Current $ Your Power of One -3, Cash Flow Operating Profit Page 16/22
Business Value Indicator Your Business Value Parameters Targeted Business Value 3,, Profit Multiple 4 +/- 1 Weighted Average EBITDA Adjustment Adjusted EBITDA 762,61 Your Current Business Value Indicator - 1 + 1 Profit Multiple 4. 3. 5. Gross Business Value 3,5,44 2,287,83 3,813,5 Total Debt 2,843, 2,843, 2,843, Your Current Business Value 27,44-555,17 97,5 Your Power Of One Value Impact Profit Multiple 4. 3. 5. Price Increase (1%) 264,48 198,36 33,6 Volume Increase (1%) 76,7 57,525 95,875 COGS Reduction (1%) 187,78 14,835 234,725 Overheads Reduction (1%) 48,648 36,486 6,81 Profit Impact on Valuation 577,68 433,26 722,1 Reduction in Accounts Receivable Days (1d) 18,115 18,115 18,115 Reduction in Inventory Days (1d) 12,862 12,862 12,862 Increase in Accounts Payable Days (1d) 12,862 12,862 12,862 Cash Impact on Valuation 43,839 43,839 43,839 Your Power of One Impact 621,447 477,45 765,849 Your Improved Business Value 828,887-78,125 1,735,899 Page 17/22
Your Improved Value Indicator Profit Multiple 4. 3. 5. Your Current Business Value 27,44-555,17 97,5 Your Power of One Impact 621,447 477,45 765,849 Your Improved Business Value 828,887-78,125 1,735,899 3,2, 2,4, 1,6, Current Business Value Power of One Impact 8, Target Value Improved Value Your Targeted Business Value Profit Multiple 4. 3. 5. Targeted Business Value 3,, 3,, 3,, Your Current Business Value 27,44-555,17 97,5 Current Value Gap -2,792,56-3,555,17-2,29,95 Your Improved Business Value Profit Multiple 4. 3. 5. Targeted Business Value 3,, 3,, 3,, Improved Business Value 828,887-78,125 1,735,899 Improved Value Gap -2,171,113-3,78,125-1,264,11 Page 18/22
Sustainable Growth Your Sustainable Growth If you increase your Revenue by + $ 1 Your investment in Accounts Receivable will be + $ 21.82 Less COGS of - $ 71. Your investment in Inventory will be + $ 23.44 Provided by Accounts Payable of - $ 8.92 Your Gross Margin will be = $ 29. You will require Working Capital of = $ 36.34 Less Overheads of - $ 18.39 Your Operating Profit will be = $ 1.61 Less Extraordinary Income/Expenses $. Interest Paid $ 2.66 Tax Paid $ 1.74 Dividends Paid $ 2.27 Your Debt to Equity ratio is 2.17:1 You can borrow $ 2.17 for each $ 1 of Retained Profit Your Retained Profit will be = $ 3.94 Your capacity to borrow will be = $ 8.55 You will have a shortfall of = $ 23.85 Page 19/22
Results & Projections Profit & Loss 3-6-215 3-6-216 3-6-217 3-6-218 Revenue 3,4, 5,, 5,8, 6,612, Cost of Goods 2,535, 3,7, 4,15, 4,694,5 Gross Margin 865, 1,3, 1,65, 1,917,5 Overheads 55, 833, 1,25, 1,216,2 Operating Profit 36, 467, 625, 71,3 Extraordinary Income/Expenses Interest Paid 5, 1, 15, 176, Net Profit Before Tax 31, 367, 475, 525,3 Tax Paid 114,6 87, 125, 115,3 Net Profit 195,4 28, 35, 41, Dividends Paid 45,4 18, 1, 15, Retained Profit 15, 1, 25, 26, Balance Sheet Cash 16, 75, Accounts Receivable 57, 9, 1,2, 1,443, Inventory 6, 92, 1,25, 1,55, Other Current Assets 17, 25, 5, 71, Current Assets 1,5, 2,1, 2,5, 3,64, Fixed Assets 1,, 1,4, 1,8, 1,8, Other Non Current Assets 2, 1, 15, 15, Non Current Assets 1,2, 1,5, 1,95, 1,95, Total Assets 2,7, 3,6, 4,45, 5,14, Accounts Payable 3, 45, 5, 59, Bank Loans - Current 4, 1,, 1,45, 1,643, Other Current Liabilities 1, 15, 2, 221, Current Liabilities 8, 1,6, 2,15, 2,454, Bank Loans - Non Current 1,, 1,2, 1,2, 1,2, Other Non Current Liabilities 2, 5, 5, Non Current Liabilities 1,2, 1,2, 1,25, 1,25, Total Liabilities 2,, 2,8, 3,4, 3,74, Equity 7, 8, 1,5, 1,31, Page 2/22
Chapter 1 - Profitability 3-6-215 3-6-216 3-6-217 3-6-218 Revenue 3,4, 5,, 5,8, 6,612, Revenue Growth % N/A 47.6 16. 14. Gross Margin 865, 1,3, 1,65, 1,917,5 Gross Margin % 25.44 26. 28.45 29. Overheads 55, 833, 1,25, 1,216,2 Overheads % 14.85 16.66 17.67 18.39 Operating Profit 36, 467, 625, 71,3 Operating Profit % 1.59 9.34 1.78 1.61 EBITDA 434, 567, 725, 81,3 Net Profit 195,4 28, 35, 41, Net Profit % 5.75 5.6 6.3 6.2 Retained Profit 15, 1, 25, 26, Interest Cover 7.2 4.67 4.17 3.98 Chapter 2 - Working Capital Accounts Receivable Days 61.19 65.7 75.52 79.66 Inventory Days 86.39 9.76 19.94 12.51 Accounts Payable Days 43.2 44.39 43.98 45.87 Working Capital Days 14.39 112.6 141.48 154.3 Working Capital 87, 1,37, 1,95, 2,43, Working Capital per $1 25.59 27.4 33.62 36.34 Working Capital Turnover 3.91 3.65 2.97 2.75 Marginal Cash Flow -.15-1.4-5.17-7.34 Current Ratio 1.88 1.31 1.16 1.25 Chapter 3 - Other Capital Other Capital 1,7, 1,555, 1,75, 1,75, Other Capital % 31.47% 31.1% 3.17% 26.47% Other Capital Turnover 3.18 3.22 3.31 3.78 Net Operating Assets 1,94, 2,925, 3,7, 4,153, Net Operating Assets % 57.6% 58.5% 63.79% 62.81% Asset Turnover 1.75 1.71 1.57 1.59 Return on Capital % 18.56% 15.97% 16.89% 16.89% Return on Total Assets % 13.33% 12.97% 14.4% 13.99% Return on Equity % 27.91% 35.% 33.33% 31.3% Page 21/22
Powered by TCPDF (www.tcpdf.org) Chapter 4 - Funding 3-6-215 3-6-216 3-6-217 3-6-218 Marginal Cash Flow -.15-1.4-5.17-7.34 Operating Cash Flow N/A 67, 145, 348,3 Operating Cash Profit 434, 567, 725, 81,3 Net Cash Flow N/A -885, -525, -193, Net Debt 1,24, 2,125, 2,65, 2,843, Debt to Equity 2. 2.75 2.52 2.17 Debt to Capital.67.73.72.68 Interest Cover 7.2 4.67 4.17 3.98 Debt Payback 2.86 3.75 3.66 3.55 Page 22/22