Pharmacy Business 5-Year 3 Statement Financial Projection Model

Description
PURPOSE OF MODEL

Highly versatile and user-friendly Excel model for the preparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing Pharmacy business generating revenue through retail sales, online sales and clinic fees.


The model allows the user to model retail and online revenue and related cost of sales, clinic fee revenue, staff costs, marketing costs, other administrative costs, fixed assets, inventories, payables, borrowings, sales tax impacts, corporate tax and dividend distributions.


The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations and incorporates a discounted cash flow valuation calculation using the projected cash flows.


KEY OUTPUTS

- Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across up to 5 years and summarised on an annual basis.
- Dashboard with:
o Summarised projected Income Statement and Balance Sheet;
o Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item;
o List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average Debt to Equity ratio;
o Bar charts summarising income statement and balance sheet projections;
o Revenue and gross profit by service category and volume of services offered over time presented in a table chart formats;
o Chart showing Revenue per month by revenue stream;
o Chart showing projected cash balance;
- Discounted cash flow valuation using the projected cash flow output.
- Breakeven analysis


KEY INPUTS

Setup Inputs:
- Name of business;
- Currency;
- First projection year and month;
- Naming for marketing costs, staff costs, admin costs, fixed assets and borrowings;
- Sales tax applicability for services, products, direct costs, and other expenses and fixed assets.

Actuals Inputs:
- Opening balance sheet (for existing businesses);
- Income Statement actuals (for trend analysis);


Projection Inputs:
- Opening days and public holidays
- Retail and online Sales assumptions including average sales by day, cost of sales percentage, credit terms received, safety stock percentage and portion of revenue subject to sales tax;
- Clinic fee sales including patient volumes and average fee per patient.
- Staff cost inputs including staff numbers, average salary per full time position, average employer’s social security percentage of salary, average annual bonus and bonus payment months.
- Other costs inputs including marketing costs and admin costs;
- Sales and corporate tax inputs including rate and payment periods;
- Dividend inputs including amount (percentage of retained earnings) and frequency;
- Fixed assets including addition amounts and useful life;
- Borrowings including addition amounts and interest rate;
- Share capital additions;
- Discount rate inputs (for valuation calculation).


MODEL STRUCTURE


The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals’ and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard’ and ‘o_DCF’.


KEY FEATURES


- The model contains a flexible timeline that allows for a mix of actual and forecast period across a 5-year period. This allows projections to be easily rolled forward as forecast periods become actual period;
- Timeline is split on a monthly basis and summarised on an annual basis;
- The model allows the user to model 3 different revenue streams (retail, online and clinic fees);
- The model is not password protected and can be modified as required following download;
- The model is reviewed using specialised model audit software to help reduce risk of formula inconsistencies;
- The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Staff costs – 5 categories;
o Marketing costs – 5 categories;
o Other expenses – 15 categories;
o Fixed assets – 5 categories;
o Borrowings – 3 facilities
- Apart from projecting revenue and costs the model includes the possibility to model receivables and payables, fixed assets, borrowings, dividends and corporate tax;
- Business name, currency, starting projection period are fully customisable;
- Revenue, cost and fixed asset descriptions are fully customisable;
- The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
- The model includes instructions, line-item explanations, checks and input validations to help ensure input fields are populated accurately;
- The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.


MODIFICATIONS


If you require any be-spoke modifications to the tool, we are more than happy to assist with this. Please send us a message through the Eloquens site


ABOUT PROJECTIFY


We are financial modelling professionals with experience working in big 4 business modelling teams and strong experience supporting businesses with their financial modelling and decision support needs. Our aim is to provide robust and easy-to-use tools that follow good practice financial modelling guidelines and assist individuals and businesses with their financial projection and analysis requirements.