Farming Excel Financial Model
The Farming Excel Financial Model provides a comprehensive framework to prepare solid financial plans and businesses’ financial analysis within the Farming Industry. It informs the user about short and long-term financial goals performance and gives you a starting point for developing a financial strategy.
This farming financial model gives you an overview of your farm’s current financials and projections for growth. It prepares a complete financial plan for your farm business, consisting of 5-years financial statements(income statement, Cash Flow Statement, and Balance Sheet), Break-Even Analysis, Diagnostic Sheet and Staup Summary Plan, etc. Further, It enables the user to determine the farm business’s actual worth by calculating the DCF( Discounted Cash Flow) factor and Free Cash Flow. The model uses a bottom-up approach to calculates the expected production volume. Revenues are derived by applying the respective pricing assumptions (up to 4 different product quality levels). OPEX and capital expenditure other assumptions are then used to prepare detailed profit and cash flow forecasts.
This Farming Financial Model will assist you in managing and organizing your business efficiently. Using this model, you cannot be distracted by complicated calculations, enable you to utilize more of your time in operation activities, and manage your customers’ tasks.
Key Inputs of Farming Excel Financial Model
- The growth rate of Product Prices and Expense growth rate
- Inventory Ratio- it will allow the model to evaluate your business estimated inventory amount on hand.
- Cost of Good Sold consists of Direct Cost, Growing Cost, Production Cost, and Harvesting Cost.
- Average Price of each product category with its sales percentage.
- Tax Rate.
- Production per Hectare in tons and Kgs.
- Marketing Cost- Included all social platforms.
- Capital Expenditure on all Assets that are bought to start business operations.
- Payable & Receivable Days inputs enable the model to calculate Account Receivable and Accounts Payables in the balance sheet.
- Operating Expense: Enter all appropriate operating expense amounts to calculate OPEX.
Key Features of Farming Excel Financial Model
This financial model template contains inputs that, when changed, impact the calculations and, therefore, the changes are applied to all relevant sheets. This financial model always has built-in flexibility to display different outcomes or final calculations based on this sheet’s changes.
This sheet provides you and your investors an analysis of all the investment requirements of a new start-up. It helps the business present a snapshot of the company to prospective investors and raise capital.
Monthly & Yearly Income Statement
The monthly Income Statement sheet of the Farming Excel Financial Model is perfect for those who require regular reporting and details. Additionally, the income statement contains all revenue streamlines with gross earnings and net earnings linked with a revenue analysis sheet to ensure accurate reporting. Oak Business Consultants understands every farming business’s goal. Therefore, we have developed a mechanism that helps business owners determine whether they are making profits or otherwise.
Furthermore, the Yearly Income Statement gives you complete insights into revenue and general & administrative expenses. The Yearly Income Statement also contains several graphs, assumptions, ratios, margins, net profit, earnings, cost of services, and profit after tax.
This balance sheet enables you to analyze your position of current assets, fixed assets, liabilities, and equity. This also allows you to monitor your accounts receivable, accounts payable, accrued expenses, etc. Therefore this specific, financial model gives you the perfect space to analyze your key financial balance accounts.
The Cash Flow statement is one of the most important financial statements because each business’s main goal is to generate cash flow. This shows how much business has consolidated money and how much is not enough to attract additional financing. This sheet also contains a dedicated sheet to monitor and analyze your company cash-ins and out. This cash flow statement is based on several key inputs, such as Payable and Receivable Days, yearly income, working capital, long-term debt, net cash, etc. This calculation then computes your net cash flow, beginning and end cash balances. This is a perfect template for your company’s cash flow management.
The break-even analysis will help you know at a glance, the profits generated at the various sales levels. The Break-Even Analysis refers to the point where your total sales contribution refers to fixed cost at zero profit and loss. This Technique is primarily based on marginal costing, which behaves differently at various levels of output activity.
Since the table calculates Return on Investment, Investor’s Future Equity Share, and Cash Burn Rate Analysis, analyzing its performance becomes easy to capture potential investors.
This Diagnostic sheet automatically calculates the data. Such as the Profitability ratio, Net operating expense ratio to expense, etc. It will also provide basic financial commentary about its financials.
Users and readers respond and process visual graphs better than data. Furthermore, This dashboard provides you a graphical management tool. It enables you to track all your relevant financial KPIs. Helps improve cash flow management, and helps to track expenses, sales, and net revenue in detail.
Benefits of Farming Excel Financial Model
- Comprehensive Financial Plan: The Financial Model is a set of various reports and KPIs that support a company’s financial health: integrated financial planning, planning and budgeting, management and performance reporting, as well as forecasting.
- Uniform Methodology: The major benefit of a farming financial model is that it promotes a uniform methodology by which the user can compare changes in a company’s operations over time.
- Mitigate Risk: The financial model can also mitigate the financial risk of the company. It will allow users to determine what-if or simulation analysis. The user can predict the outcome of marketing campaigns, the cost of entering a new market, and the effect of price changes on the industry, among many.
- Provide Financial Assistance: This Financial Model excel template also enables you to begin your startup planning with the maximum assistance and least confusion. No composing equations and formulas, no designing and programming, and no need to hire a costly external consultant required.
- Well-Formatted & Presented: All core 3-financial statements (income statement, cash flow, and Balance Sheet) are accurately presented and connected with the input and formatted in a well-structured way. Also, it follows a particular color theme, which is consistent in all sheets.
- Investor’s Friendly: All related investor metrics are included; therefore, investors will appreciate the financial model’s full transparency while considering investing in your business. Also, it will enable the user to include numbers in their Business Plan.
- Feasible & Manageable: This financial model is exceptionally adaptable and easy to use by anyone with basic Excel and Financial Principle knowledge to analyze their business performance.