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    Financial Model 1

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    ahmedmostafaibrahim22
    This document contains financial projections for a company from 2019-2024 including income statements, assumptions, common size analysis, sensitivity analysis, and cost analysis. It projects that revenues will grow substantially each year from $2M to nearly $11M by 2024. However, costs of goods sold are projected to equal revenues by 2022, eliminating gross profit. While operating income is positive through 2021, losses are projected from 2022-2024 as revenues are insufficient to cover costs. The cost analysis shows that costs of goods sold make up the largest percentage of total costs, averaging over $2M by 2024.

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    Financial Model 1

    Uploaded by

    ahmedmostafaibrahim22
    17 views1 page
    This document contains financial projections for a company from 2019-2024 including income statements, assumptions, common size analysis, sensitivity analysis, and cost analysis. It projects that revenues will grow substantially each year from $2M to nearly $11M by 2024. However, costs of goods sold are projected to equal revenues by 2022, eliminating gross profit. While operating income is positive through 2021, losses are projected from 2022-2024 as revenues are insufficient to cover costs. The cost analysis shows that costs of goods sold make up the largest percentage of total costs, averaging over $2M by 2024.

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    This document contains financial projections for a company from 2019-2024 including income statements, assumptions, common size analysis, sensitivity analysis, and cost analysis. It projects that revenues will grow substantially each year from $2M to nearly $11M by 2024. However, costs of goods sold are projected to equal revenues by 2022, eliminating gross profit. While operating income is positive through 2021, losses are projected from 2022-2024 as revenues are insufficient to cover costs. The cost analysis shows that costs of goods sold make up the largest percentage of total costs, averaging over $2M by 2024.

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    © All Rights Reserved
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    17 views1 page

    Financial Model 1

    Uploaded by

    ahmedmostafaibrahim22
    This document contains financial projections for a company from 2019-2024 including income statements, assumptions, common size analysis, sensitivity analysis, and cost analysis. It projects that revenues will grow substantially each year from $2M to nearly $11M by 2024. However, costs of goods sold are projected to equal revenues by 2022, eliminating gross profit. While operating income is positive through 2021, losses are projected from 2022-2024 as revenues are insufficient to cover costs. The cost analysis shows that costs of goods sold make up the largest percentage of total costs, averaging over $2M by 2024.

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    of 1

    Financial Model 1 Ahmed Mostafa

    2019A 2020A 2021A 2022E 2023E 2024E


    Co.
    In USD
    Income Statement In USD
    Revenues 2,000,000 3,000,000 4,000,000 5,666,667 7,791,667 10,875,868
    GOGS 500,000 1,500,000 3,000,000 5,666,667 7,791,667 10,875,868
    Gross Profit 1,500,000 1,500,000 1,000,000 - - -
    SG&A 300,000 400,000 500,000 500,000 500,000 500,000
    Operating Income EBIT 1,200,000 1,100,000 500,000 (500,000) (500,000) (500,000)
    Interest Expenses 100,000 100,000 100,000 100,000 100,000 100,000
    EBT 1,100,000 1,000,000 400,000 (600,000) (600,000) (600,000)
    Tax Expense 440,000 400,000 160,000 - - -
    Net Income 660,000 600,000 240,000 (600,000) (600,000) (600,000)

    Assumpions
    Revenue Growth Rate 50% 33% 42% 38% 40%
    COGS & Revenue 25% 50% 75% 100% 100% 100%
    SG&A 300,000 400,000 500,000 500,000 500,000 500,000
    Interest Expense 100,000 100,000 100,000 100,000 100,000 100,000
    Tax % EBT 40% 40% 40% 40% 40% 40%

    Analysis
    Common Size Analysis

    Revenues 100% 100% 100% 100% 100% 100%


    GOGS 25% 50% 75% 100% 100% 100%
    Gross Profit 75% 50% 25% 0% 0% 0%
    SG&A 15% 13% 13% 9% 6% 5%
    Operating Income EBIT 60% 37% 13% -9% -6% -5%
    Interest Expenses 5% 3% 3% 2% 1% 1%
    EBT 55% 33% 10% -11% -8% -6%
    Tax Expense 22% 13% 4% 0% 0% 0%
    Net Income 33% 20% 6% -11% -8% -6%

    Sensitivity Analysis % Change 5%

    Revenues 2,100,000 3,150,000 4,200,000 5,950,000 8,181,250 11,419,661


    GOGS 525,000 1,575,000 3,150,000 5,950,000 8,181,250 11,419,661
    Gross Profit 1,575,000 1,575,000 1,050,000 - - -
    SG&A 315,000 420,000 525,000 525,000 525,000 525,000
    Operating Income EBIT 1,260,000 1,155,000 525,000 (525,000) (525,000) (525,000)
    Interest Expenses 105,000 105,000 105,000 105,000 105,000 105,000
    EBT 1,155,000 1,050,000 420,000 (630,000) (630,000) (630,000)
    Tax Expense 462,000 420,000 168,000 - - -
    Net Income 693,000 630,000 252,000 (630,000) (630,000) (630,000)

    Cost Analysis

    GOGS 37% 500,000 1,500,000 3,000,000 5,666,667 7,791,667 10,875,868


    SG&A 22% 300,000 400,000 500,000 500,000 500,000 500,000
    Interest Expenses 7% 100,000 100,000 100,000 100,000 100,000 100,000
    Tax Expense 33% 440,000 400,000 160,000 - - -

    Total 100% 1,340,000 2,400,000 3,760,000 6,266,667 8,391,667 11,475,868


    Average 335,000 600,000 940,000 1,566,667 2,097,917 2,868,967
    Weighted Average 405,375 785,821 1,285,971 2,223,037 3,011,759 4,156,502

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