Given A0* $2,000

S0 $3,000
L0 $200
NI (2018) $118
D (2018) $58
g 10%
Calculated A0*/S0 0.6667
S1 $3,300
Change in S $300
L0/S0 0.0667
M 0.0392
1-Payout Ratio 0.5106

Sensibity Analysis
Growth Rate
AFN $114 2.50% 5.00% 7.50%
Retention 10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
(A0*/S0)*Change in S (L0/S0)*Change in S M*S1(Payout Ratio)
$200 $20 $66

AFN $114

What if Analysis by Goal Seek (SUSTAINABLE GROWTH RATE)

Set Cell $114
To Value 0
By Changing Cell (g) 10%
Result 3%

10.00% 12.50% 15.00% 17.50%

20.00%
Sales 1216666
COGS 1013889
INVENTORIES 250000
AR 300000
AP 150000
DAYS IN A YEAR 365

CASH CONVERSION CYCLE = INVENTORY CONVERSION PERIOD +

= INVENTORIES/ DAILY AVG. COGS +
= 89.999990137 +
= 126.0000453699
AVERAGE COLLECTION PERIOD - PAYABLE DEFERRAL PERIOD
AR/ DAILY AVG. SALES - AP/ DAILY AVG. COGS
90.0000493151 - 53.9999940822