Description

Original Equipment Manufacturer Financial Model

The original Equipment Manufacturer Financial Model provides a financial framework to forecast the financial statement over 5 years accurately. This model contains colored input cells. The model used growth rate and other assumptions to forecast sales. As a business owner, you won’t need to deal with complicated formulas or financial concepts to produce financial plans for your manufacturing business. Just insert some of our pre-built financial model components, adjust some assumptions, and a complete financial analysis is created for you instantly.

Introduction to Original Equipment Manufacturer Financial Model 

Original Equipment ManufacturerFinancial Model Template presents the business case of a brand-new start-up consultancy business with an upfront investment in a website, SEO, logo, and copywriting. The model contains the three financial statements, including the cash flows, and calculates the relevant metrics (Sensitivity Analysis, Break-even Analysis, Diagnostic Tools, Project evaluation, and Charts). The financing options for the project include a standard long-term loan, an investment made by the investors and, of course, a marketing sheet (including automated inbound and outbound marketing costs sheet, which also contains how many customers will achieve as a result).

So a quick overview of the Financial Model, in the contents tab, you can see the structure of the model and, by clicking on any of the headlines, be redirected to the relevant worksheet.

How To Use Model

On the Input tab, you can feed the financial information for the model, such as sales price, cost, expenses, etc. Inputs are shown in this model with a Peach fill and call-up (direct links from other cells) filled in grey with black letters, while calculations depict white fill and black characters.

Calculations: This is where all analysis performs. The revenues are calculated based on the product or services sold, promotion, pricing, promotions, and marketing campaign, deducting the business variable and fixed costs. With the help of working capital assumptions, we have measured the impact on business cycles. In last, the level of the investment. Consider calculating the relevant debt financing.

Moving to the Project Valuation tab, a company valuation is performed by using the free cash flows with discount rates to the firm. Then a series of investment metrics are presented (IRR, NPV, ROE).

The Dashboard tab: Various graphs present the revenues, cash analysis, break-even analysis, sensitivity, assets vs. liabilities, startup summary, etc.

Key Inputs of Original Equipment Manufacturer Financial Model

1. The growth rate, Price, and Expense.
2. Production Assumption.
3. Sales Volume Assumptions
4. Variable Cost Assumption.
5. Fixed cost Assumption.
6. Revenue Assumptions
7. Average Payable and Receivable days your business is following.
8. Cost of Goods.
9. Fixed Asset and Capital Expenditure.
10. Tax Rate
11. Investment table.

Key Features of Original Equipment Manufacturer Financial Model

Input Sheet

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.

Startup Summary

A start-up summary tab includes the total cost incurred at the start of business and capital expenditure, how much cash has been injected by the company so far, and the amount of investment required is calculated based on the number of months.

A Startup Summary helps you take a realistic view of your idea and double-check whether the business has enough funds to support operations.

Monthly & Yearly Income Statement

The Original Equipment Manufacturer’s Financial Model provides the monthly and yearly income statement structure. The framework for creating a full corporate forecasting model tailored to your business.

An integrated financial model is powerful since it enables the Financial Model user to change any assumption in one part of the statement to see how it impacts all other parts accurately and consistently.

The monthly Income Statement sheet of the Financial Model is perfect for those who require regular reporting and details. The Income Statement contains all revenue streamlines with gross and net earnings linked with a revenue analysis sheet to ensure accurate reporting. Oak Business Consultants understands the accounting Services business’s goal. Therefore, we have developed a mechanism that helps business owners determine whether they are making profits.

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, net profit, cost of services, and profit after tax.

 Balance Sheet

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.

Cash Flow

The Cash Flow Statement is the vital part of the three statements that report the cash spent and generated during a specific period. The Cash Flow Statements bridge the income statement and balance sheet by how money has moved in and out of business.

Three main sections of the Cash flow Statement:

1. Operating Activities: We have included all cash in and out related to the operations of the business
2. Investing Activities: Any cash from the disposal of an asset and investments included in this section and linked to the inputs and fixed asset tab.
3. Financing Activities: We have separately made a loan-related tab where you can enter all loan-related information. The tab is linked to the Financing Activities of Cashflow Statement.

The Cashflow Statement in our Model 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 computes your net cash flow and beginning and end cash balances. This is a perfect template for your company’s cash flow management.

Diagnostic Sheet

This Diagnostic sheet is a new inclusion to our financial model. This automatically explains the condition of the business. For example, if your company’s profit is 30% of the total sales, the sheet will include favorable comments ( As mentioned above in the picture ). The comments have automatically connected to the numbers of financial data in the income statement, balance sheet, and Cashflow. The Diagnostic Sheet is beneficial to give the company’s insights in just one line.

Dashboard

Users and readers respond and process visual graphs better than data. Furthermore, This dashboard provides you with a graphical management tool that enables you to track all your relevant financial KPIs, improve cash flow management, and track expenses, sales, and net revenue in detail to meet and outperform the financial objectives of your business.

Benefits of Original Equipment Manufacturer Financial Model Template

Encapsulate Company Performance- The Original Equipment Manufacturer Financial Model Template analysis simplifies a company’s financial statements. It allows the user to express critical profitability and financial position information in just a few numbers. For example, the company’s net profit margin encapsulates the net effect of a company’s revenues and all expenses. It will enable the user to conclude a company’s profitability without going through lengthy account statements.

Bottom Line – A Original Equipment Manufacturer’s financial model can be the key to your company’s better and informed future. Succeeding in planning your Company’s finances well will mean overall success in making wise investment decisions, purchasing the right operating assets, controlling costs, and determining company valuation.

Accommodates Investors – This model provides valuation and performance analysis charts. It enables the investors and banks to clearly determine the company’s actual worth considering lending funds to your company.

Based on Financial Principles – We researched an Equipment Manufacturer’s business model in-depth. So this financial model has been created with logically correct financial and economic principles and assumptions.