Pasta Manufacturing Financial Model

The model is to assist potential investors seeking to set-up a pasta manufacturing business in emerging markets. It shows the procurement of raw materials both locally and internationally. The plant capex has been included as well as the financing options.

The financial model looks at several performance metrics such as Net Present Value (NPV), Payback period, Internal Rate of Return (IRR) both for the project as well as the equity investors using free cash flow to equity (FCFE) and free cash flow to firm (FCFF).

The financial ratios are very critical especially for bank debt financing as we look at liquidity, profitability, solvency as well as efficiency ratios. 

The model will also be useful at looking at the break-even volumes. 

Users can view the model in monthly format or in annualized format depending on the preference.

The operations shows ramp-up of volumes as well as working hours. These are all flexible and users can manipulate the model and run multiple scenarios in a bid to evaluate the robustness of the business. Opex and revenue are grown by inflation.