Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
  • Monte Carlo P&L Simulation Excel Model Template
Originally published: 11/01/2019 11:34
Publication number: ELQ-64067-1
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Monte Carlo P&L Simulation Excel Model Template

Monte Carlo simulation model to project the distribution of P&L results for a business based on rev & cost probabilities

distributionexcelfinancialincome statementmodelmonte carlop&lprobabilityprofit/lossprojectionsimulation

Description
Generic and easy to use Monte Carlo Simulation Excel Model to project the distribution of Profit & Loss P&L (Income Statement) results for a business based on probability inputs for different revenue and cost drivers.

The model allows the user to project P&L results across 5 years for up to 3 revenue streams (including separate variable cost inputs for each) and 2 fixed cost categories.

The Model allows the user to input possible outcomes and their respective probabilities for the following key drivers:
- Year 1 sales volume;
- Year on year growth rate in sales volumes;
- Year 1 variable cost per unit sold
- Year on Year growth rate in variable costs per unit
- Year1-5 fixed cost amount.

The model calculates results over and over for up to 500 iterations each time using a different set of random values. These random values, in turn, pull through input assumptions with frequencies for each linked to the input probabilities. The resulting outputs comprise of:
- Mean Net profit and loss result
- Key ratios and charts on the mean net profit and loss result
- Table and chart showing distributions of Revenues, Gross Profit and net Profit across the 5 projection years (from Minimum to Maximum) on a total business basis
- Table and chart analysing gross profit outputs by revenue stream

The model contains, 6 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The only tabs to be populated by the user are the input tabs ('i_Setup' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the template outputs presented in 'o_Results'. System tabs include
- a 'Front Sheet' with a disclaimer, methodology description, instructions and contents; and
- a Checks dashboard with a summary of checks by tab.

Other key features/details include:
- The model follows best practice financial modelling guideline and includes instructions, line item explanations, checks and input validations;
- The model allows the user to model 3 separate revenue streams on a Price x Volume basis;
- Costs are split into: variable and fixed for better driver-based forecasting;
- Revenue and fixed cost descriptions are fully customisable;
- Business name, currency and starting projection year are customisable;
- Results are presented on a yearly basis with a maximum of 5 projection years;
- The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors;
- The model includes checks and input validations to help ensure input fields are populated accurately.

This business tool includes
1 Excel Monte Carlo Model

Acquire business license for $50.00

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Further information

To understand the distribution of possible P&L results for a business based on specified probabilities of cost and revenue outcomes occuring

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