CORPORATE FINANCE by

Bojan
CHEAT SHEET Radojicic

FINANCIAL STATEMENTS PRESENTATION RATIO ANALYSIS

Balance sheet notes 2022 2023 Profit and Loss Account notes 2022 2023 Cash flow statement Notes 2023 Ratio analysis 2022 2023 2022 2023
$ $ $
Liquidity
Profitability ratios
Intangible assets 50 350 Revenues 4,200 4,500 Net income 1,186
Tangible assets 350 380 COGS variable 1,270 1,350 Net working capital 5 20
Gross profit margin 61% 61%
Fixed assets 400 730 COGS fixed 380 420 Depreciation and amortization 120 Current assets - Current liabilities 225 1,181
EBITDA margin 37% 36%
COGS 1,650 1,770 Changes in account receivables -10 Current ratio 2.29 5.92
Net profit rate 27% 26%
Inventories 10 20 Changes in inventories -10 Cash ratio 2.14 5.73
ROE 236% 71%
Account Receivable 15 25 Gross profit 2,550 2,730 Changes in trade payables 5 Quick ratio 2.23 5.84
ROCE 179% 62%
Cash 375 1,376 Changes in other liabilities -20 ROA 140% 55%
Current assets 400 1,421 Overhead – variable 750 780 CF from operating activities 1,271
Efficiency
Overhead - fixed 254 321
Structure
Total assets 800 2,151 Overhead costs 1,004 1,101 Sales of capital assets
Days sales outstanding 1 2
Purchase of capital assets 450
Total COGS in Revenue 39% 39% Days inventory outstanding 2 3
Equity 475 1,661 EBITDA / Operating profit 1,546 1,629 CF from investing activities -450
COGS variable in Days payable outstanding 4 5
revenue 30% 30%
Long term fin. Liabilities 150 250 Depreciation and amortization 150 120 Changes in share capital 0 Cash conversion cycle days (1) 0
COGS fixed in revenue 9% 9%
Interest and financial expenses 5 28 Changes in financial liabilities 180 Asset turnover 5 3
Overhead in revenue 24% 24% Fixed asset turnover 11 4
Trade payables 20 25 Financial income 10 15 CF from financing activities 180
Interest expense in loans 2% 6% EBITDA to interest coverage 309 58
Financial liabilities 120 200 EBT 1,401 1,496
Equity ratio 59% 77%
Other liabilities 35 15 Total cash flow 1,001
Debt ratio 41% 23%
Current liabilities 175 240 Tax 280 310 Cash at the beginning of period 375
Fixed assets in total
assets 100% 51%
Total Equity and liabilities 800 2,151 Net income 1,121 1,186 Cash at the end of period 1,376

REVENUE FORECAST COGS FORECAST OVERHEAD VARIABLE FORECAST

Estimated Estimated
annual annual
Revenues 2023 growth rate 2024 2025 2026 2027 2028 COGS note 2024 2025 2026 2027 2028 Overhead variable 2023 growth rate 2024 2025 2026 2027 2028
$ $ $

Labor cost 500 5% 525 551 579 608 638

Category/Service/Product 1 1,100 5% 1,155 1,213 1,273 1,337 1,404
COGS variable share in revenue 32% 34% 35% 36% 37% Other employees costs 30 10% 33 36 40 44 48
Category/Service/Product 2 1,050 10% 1,155 1,271 1,398 1,537 1,691 Rent 45 5% 47 50 52 55 57
Category/Service/Product 3 750 5% 788 827 868 912 957 COGS fixed share in revenue 10% 9% 9% 8% 9%
Utilities 32 3% 33 34 35 36 37
Category/Service/Product 4 160 3% 165 170 175 180 185 Phone internet 25 3% 26 27 27 28 29
Category/Service/Product 5 321 3% 331 341 351 361 372 Equipment rental 25 3% 26 27 27 28 29
Maintenance 25 5% 26 28 29 30 32
Category/Service/Product 6 450 3% 464 477 492 506 522 COGS variable share in revenue 1,520 1,705 1,854 2,016 2,192
Other 41 3% 42 43 45 46 48
Category/Service/Product 7 100 5% 105 110 116 122 128
COGS fixed share in revenue 475 451 477 448 533 Other 1 25 3% 26 27 27 28 29
Category/Service/Product 8 250 3% 258 265 273 281 290 Other 2 32 8% 35 37 40 44 47
Total COGS 1,994 2,156 2,331 2,464 2,725
Category/Service/Product 9 300 3% 309 318 328 338 348 Total revenues 780 819 859 902 947 994
Category/Service/Product 10 19 8% 21 22 24 26 28
Total revenues 4,500 4,748 5,014 5,297 5,600 5,925

OVERHEAD FIXED FORECAST NET WORKING CAPITAL FORECAST FINANCIAL LIABILITES FORECAST
Estimated
annual Working capital projections note 2024 2025 2026 2027 2028 Financial liabilities note 2024 2025 2026 2027 2028
Overhead fixed 2023 growth rate 2024 2025 2026 2027 2028 $ $
$
Days sales outstanding 15 15 15 15 15 Long term fin. Liabilities 250 300 350 400 450
Days inventory outstanding 12 12 12 12 12 Short term fin. Labilities 200 250 300 350 400
Days payable outstanding 10 10 10 10 10 Opening balance 450 550 650 750 850
Labor cost 190 5% 200 209 220 231 242
Days other liabilities outstanding 30 30 30 30 30
Other employee costs 18 10% 20 22 24 26 29
Long term loan repayment 100 100 100 100 100
Rent 22 5% 23 24 25 27 28 New long term loans 150 150 150 150 150
Utilities 10 3% 10 11 11 11 12 Sales turnover 4,748 5,014 5,297 5,600 5,925 Short loan repayment 100 100 100 100 100
Phone internet 10 3% 10 11 11 11 12 Inventory turnover 1,994 2,156 2,331 2,464 2,725 New short term loans 150 150 150 150 150
Consultants 31 3% 32 33 34 35 36 Suppliers turnover 1,994 2,156 2,331 2,464 2,725
Accounting 10 5% 11 11 12 12 13 Other liabilities turnover 1,155 1,213 1,273 1,337 1,404 Long term fin. Liabilities 300 350 400 450 500
Maintenance 10 3% 10 11 11 11 12 Short term fin. Liabilities 250 300 350 400 450
Other 1 10 3% 10 11 11 11 12 Account receivable 195 206 218 230 243 Period end balance 550 650 750 850 950
Other 2 10 8% 11 12 13 14 15 Inventory 66 71 77 81 90
Total revenues 321 337 354 371 390 409 Account payable 55 59 64 68 75 Interest expenses note 1662 1663 1664 1665 1666
Other liabilities 95 100 105 110 115 Interest expense in Loan balance 6% 6% 6% 6% 6%

Working capital, net 111 118 126 134 143 Period end balance 34 40 47 53 59

CAPEX AND DEPRECIATION AND AMORTIZATION FORECAST WACC CALCULATION BREAKEVEN ANALYSIS
Purshase (starting value) value Depreciation and amortization
WACC calculation notes Damodaran
Useful life in Breakeven analysis Notes 2024 2025 2026 2027 2028
Fixed assets years 2024 2025 2026 2027 2028 2024 2025 2026 2027 2028 Risk-free rate 2.0% $
$ Equity risk premium 4.72%
Unlevered industry Beta 0.81
Revenues 4,748 5,014 5,297 5,600 5,925
Intangible assets 5 350 350 350 350 350 70 70 70 70 70 Gearing (ND / E) 56.4%
Relevered industry beta 1.15 Variable costs 2,338 2,564 2,756 2,963 3,186
Tangible assets 5 380 380 380 380 380 76 76 76 76 76
Existing assets 730 730 730 730 730 146 146 146 146 146 Sub-total 7.4% Fixed costs 812 805 848 838 943
Size premium 0.5% Costs 3,150 3,368 3,604 3,801 4,129
Country risk premium 0.5%
Intangible investment 5 70 70 70 70 70 14 14 14 14 14
Specific risk premium 0.7%
Intangible investment 5 150 150 350 350 350 30 30 70 70 70 Contribution profit 2,410 2,450 2,541 2,637 2,738
Cost of equity 9.1%
Intangible investment 7 30 30 30 30 30 4 4 4 4 4
Tangible investment 12 100 100 100 100 100 8 8 8 8 8 Industry - Damodaran database 3.6% Contribution margin 1 0 0 0 0
Tangible investment 5 100 100 100 100 100 20 20 20 20 20 Cost of debt 3.6%
Tangible investment 10 120 120 120 120 120 12 12 12 12 12 Corporate tax rate 25.5%
New investment 570 570 770 770 770 89 89 129 129 129 2.7% Breakeven revenues 1,599 1,647 1,767 1,779 2,039
Cost of Debt after tax
Gearing (ND / EV) 36.0%
WACC 6.8%
Inflation – Local 3.5%
Total 1,300 1,300 1,500 1,500 1,500 235 235 275 275 275 WACC (adjusted) 10.5%

BALANCE SHEET FORECAST PROFIT AND LOSS ACCOUNT FORECAST CASH FLOW FORECAST
Balance sheet notes 2024 2025 2026 2027 2028 Profit and Loss Account notes 2024 2025 2026 2027 2028 Cash flow statement notes 2024 2025 2026 2027 2028
$ $ $

Intangible assets 482 363 405 247 89 Revenues 4,748 5,014 5,297 5,600 5,925 Net income 1,055 1,086 1,088 1,167 1,159
Tangible assets 584 467 351 235 118 COGS variable 1,520 1,705 1,854 2,016 2,192
Fixed assets 1,065 831 756 482 207 COGS fixed 475 451 477 448 533 Depreciation and amortization 235 235 275 275 275
COGS 1,994 2,156 2,331 2,464 2,725 Changes in account receivables (170) (11) (12) (12) (13)
Inventories 66 71 77 81 90
Account Receivable 195 206 218 230 243 Changes in inventories (46) (5) (6) (4) (9)
Gross profit 2,754 2,858 2,966 3,136 3,199
Cash 2,089 3,503 4,758 6,292 7,816 Changes in trade payables 30 4 5 4 7
Current assets 2,350 3,780 5,052 6,603 8,149 Changes in other liabilities 80 5 5 5 6
Overhead – variable 819 859 902 947 994
CF from operating activities 1,183 1,314 1,355 1,434 1,424
Overhead - fixed 337 354 371 390 409
Total assets 3,415 4,611 5,808 7,084 8,356
Overhead costs 1,155 1,213 1,273 1,337 1,404
Sales of capital assets
Equity 2,716 3,802 4,890 6,057 7,216
EBITDA / Operating profit 1,599 1,645 1,693 1,800 1,796 Purchase of capital assets 570 0 200 0 0
Long term fin. liabilities 300 350 400 450 500 CF from investing activities (570) 0 (200) 0 0
Depreciation and amortization 235 235 275 275 275
Trade payables 55 59 64 68 75 Interest and financial expenses 34 40 47 53 59 Changes in share capital 0 0 0 0 0
Financial liabilities 250 300 350 400 450 Financial income 5 5 5 5 5 Changes in financial liabilities 100 100 100 100 100
Other liabilities 95 100 105 110 115 EBT 1,335 1,375 1,377 1,477 1,467 CF from financing activities 100 100 100 100 100
Current liabilities 400 459 518 577 640
Tax 280 289 289 310 308
Total cash flow 713 1,414 1,255 1,534 1,524
Total Equity and liabilities 3,415 4,611 5,808 7,084 8,356
Cash at the beginning of period 1,376 2,089 3,503 4,758 6,292
Net income 1,055 1,086 1,088 1,167 1,159
Cash at the end of period 2,089 3,503 4,758 6,292 7,816

VERTICAL ANALYSIS HORIZONTAL ANALYSIS DCF VALUATION

Vertical analysis notes 2024 2025 2026 2027 2028 Discounted Cash Flows Notes 2024 2025 2026 2027 2028
$
Horizontal analysis notes 2024 2025 2026 2027 2028
$ Net income 1,055 1,086 1,088 1,167 1,159
Revenues 100% 100% 100% 100% 100%
Revenues 6% 6% 6% 6% 6%
COGS variable 32% 34% 35% 36% 37% Depreciation and amortization 235 235 275 275 275
COGS variable 13% 12% 9% 9% 9%
COGS fixed 10% 9% 9% 8% 9% Net Working capital adjustments (106) (7) (8) (8) (9)
COGS fixed 13% -5% 6% -6% 19%
COGS 42% 43% 44% 44% 46%
COGS 13% 8% 8% 6% 11% CAPEX adjustments (570) 0 (200) 0 0
Free Cash Flow 613 1,314 1,155 1,434 1,424
Gross profit 58% 57% 56% 56% 54% Gross profit 1% 4% 4% 6% 2% Discount factor 1.1052 1.2216 1.3501 1.4922 1.6493

Overhead - variable 17% 17% 17% 17% 17% Overhead - variable 5% 5% 5% 5% 5% DCF 555 1,076 855 961 864
Overhead - fixed 7% 7% 7% 7% 7% Overhead - fixed 5% 5% 5% 5% 5%
Overhead costs 24% 24% 24% 24% 24% Overhead costs 5% 5% 5% 5% 5% Terminal Value 9,713
Discounted Terminal Value 5,889
EBITDA / Operating profit 34% 33% 32% 32% 30% EBITDA / Operating profit -2% 3% 3% 6% 0%

DCF value of operations 10,199

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