PURPOSE OF MODEL
 
Highly versatile and user-friendly Excel model for the preparation of an 8-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a quarterly timeline for a startup or existing education business generating revenue through the provision of tuition and other related income.
 
The model allows the user to model the tuition revenue for up to 15 grades/courses (can be extended with minimal modelling effort) and 10 ancillary income streams. The model also includes related costs such as staff costs, other variable costs per student and other income category, other expenses, fixed assets and borrowings.
 
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
 
The key outputs include:
Full projected financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a quarterly basis across 8 years and summarised on an annual basis.
Dashboard with:
Summarised projected Income Statement and Balance Sheet
Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item
List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average Debt to Equity ratio.
Charts summarising student numbers vs staff numbers and breakdown of tuition revenue and EBITDA.
Discounted cash flow valuation using the projected cash flow output.
 
 
KEY INPUTS
 
Inputs are split into income statement and balance sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly. 
 
Setup Inputs:
Name of business;
Currency;
First projection year and quarter;
Naming for grade/course categories, other income, other variable costs, staff costs, other expenses, fixed assets and borrowings;
Sales tax applicability for each revenue and cost item including fixed assts.
 
Actuals Inputs:
Opening balance sheet (for existing businesses);
Income Statement actuals (for trend analysis);
 
Projection Inputs:
Tuition revenue inputs including tuition fees, number of classes per grade/course, maximum students per class, occupancy rate, scholarship rate, settlement quarters in advance;
Other income inputs including volume and revenue per unit;
Variable cost inputs including amount per student and amount per other income category;
Other costs inputs including staff costs and other expenses;
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_Charts’ and ‘o_DCF’.
 
System tabs include:
A 'Front Sheet' containing a disclaimer, instructions and contents; 
A checks dashboard containing a summary of checks by tab.
 
 
KEY FEATURES
 
Other key features of this model include the following:
The model follows good practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
The model contains a flexible timeline that allows for a mix of actual and forecast period across an 8-year period. This allows projections to be easily rolled forward as forecast periods become actual period;
Timeline is split on a quarterly basis and summarised on an annual basis; 
The model allows the user to model up to 15 separate grade/course categories with their own unique tuition revenue inputs;
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):
Tuition revenue – 15 grade/course categories;
Other income – 10 categories;
Variable costs per student – 3 categories;
Variable cost per other income – 10 categories (1 for each other income category);
Staff costs – 10 categories;
Other expenses – 15 categories;
Fixed assets – 5 categories;
Borrowings – 3 facilities
Apart from projecting revenue and costs the tool includes the possibility to model deferred income (for any payments in advance), fixed assets, borrowings, dividends, corporate tax and sales taxes;
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 & SUPPORT
 
If you require any be-spoke modifications or support, we are more than happy to assist. Please send us a message below or contact us on hello@useprojectify.com