Financial model

Works like Excel, the way finance teams model. Fix a three-year operating model before Friday: three planted errors, a linked P&L, a scenario switch, then downside EBITDA and the NPV.

Finance desk

Larkspur Gear Co.Not checked yet

QuickCruit Sheets

Assumptions

Year 1

Year 2

Year 3

Scenario: 1 base, 2 upside, 3 downside

Unit growth, Outerwear

13.0%

Unit growth, Footwear

8.0%

Unit growth, Camp gear

8.0%

Gross margin

46.0%

Price growth

4.0%

3.0%

Headcount

Pay raise, per year

3.0%

Cost per head ($ thousands)

98.00

100.94

103.97

Other opex, % of revenue

12.0%

D&A, % of revenue

3.0%

Capex, % of revenue

6.0%

Working capital, % of revenue

3.0%

Tax rate

21.0%

Made-up figures for practice. Not investment advice.

ReadyType to fill a cell. Double-click or F2 to edit.

Review notes on the three-year operating model, which is open next to this: Assumptions, Revenue build, P&L, DCF and Scenarios. Leadership walks through it Friday.

Known errors I haven't had time to locate:

a hardcoded number sitting in a row of formulas
a total that misses a segment
a reference that broke when someone filled it right

Open items:

P&L revenue is still typed in from an old draft. Link it to the Revenue build.
The scenario switch: B2 on Assumptions should flip the growth and margin rows between base, upside and downside, pulling from the Scenarios tab.
Formatting on Assumptions: fix the colors, inputs blue and formulas black.

Send back two numbers in $ thousands: year 3 EBITDA in the downside case, and the base case NPV.

Larkspur Gear Co. is a made-up company and every figure is invented. A practice scenario, not investment advice.

Find the typed number sitting in a row of formulas
Fix the revenue total that misses a segment
Fix the reference that broke when it was filled right
Link P&L revenue to the Revenue build
Make B2 on Assumptions switch the growth and margin rows between cases
On Assumptions, inputs blue and formulas black
Year 3 EBITDA in the downside case$thousand
Base case NPV at the WACC on the DCF tab$thousand

Checking costs nothing and changes nothing. Ctrl or Cmd + Z undoes any edit in the model.