MODEL OVERVIEW
 
An equipment rental business provides machinery and equipment to customers on a short-term or long-term rental basis, typically priced per day, week or month, enabling clients to access essential equipment without the need for significant upfront capital investment. By retaining ownership of the equipment and managing maintenance, logistics and fleet utilisation, rental companies deliver flexible, cost-efficient access to machinery while generating recurring rental income and ancillary service revenues.
 
Our highly versatile and user-friendly Excel model enables the preparation of a 5-year rolling, fully integrated 3-statement financial projection (Income Statement, Balance Sheet and Cash Flow Statement) on a monthly timeline for a startup or established equipment rental business offering machinery and equipment rentals.
 
The model allows users to simulate up to 8 rental services and 8 equipment categories, together with other income streams, direct rental costs, staff costs, marketing costs, other operating expenses, equipment fleet capital expenditure and depreciation, borrowings, sales tax, corporate tax, and dividend distributions.
 
The model follows good-practice financial modelling principles and includes clear instructions, line-item explanations, built-in checks and input validations. It also incorporates a discounted cash flow (DCF) valuation based on projected cash flows, providing a robust framework for analysing fleet and unit economics, capital requirements and long-term value creation in an equipment rental business.
 
KEY OUTPUTS
 
Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across 5 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;
Tables and Bar charts summarising revenue, direct expenses and rental volumes;
Charts and graphs showing: cash balance by month, free cash flow generation, cash flow statement breakdown, profit margins, income statement breakdown, net cash vs net income, working capital, valuation and capital structure.
Discounted cash flow valuation using the projected cash flow output.
Breakeven analysis
 
KEY INPUTS
 
Setup Inputs:
Name of business;
Currency;
First projection year and month;
Naming for rental services, equipment categories, other income, direct expenses, staff costs, marketing costs, other operating costs, fixed assets and borrowings;
 
Actuals Inputs:
Opening balance sheet (for existing businesses);
Income Statement actuals (for trend analysis);
 
Projection Inputs:
Equipment rental services including number of rentals, daily rental rates, equipment per rental, average rental days, direct staff per rental service;
Equipment inputs including cost per equipment, annual inflation rate, useful life, target utilisation, number of equipment required per service, initial loan to value, loan interest rate and loan period.
Direct expenses calculated based on number of rentals, amount per equipment, or amount per annum basis.
NonDirect Staff cost inputs including staff numbers, average salary per full time position, average employer’s social security percentage of salary, average annual bonus and bonus payment months.
Other income and costs inputs including marketing costs and other operating costs;
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, interest rate and maturity date;
Share capital additions;
Discount rate inputs (for valuation calculation).
 
KEY FEATURES
 
The model contains a flexible timeline that allows for a mix of actual and forecast periods across a 5-year period. This allows projections to be easily rolled forward as forecast periods become actual period;
Timeline is split on a monthly basis and summarised on an annual basis; 
The model is not password protected and can be modified as required following download;
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Rental services – 8 types;
Equipment categories – 8 types;
Other income categories – 5 categories;
Direct expenses – 5 categories;
Staff costs – 15 categories (5 Direct and 10 Non-Direct);
Marketing costs – 5 categories;
Other expenses – 15 categories;
Fixed assets – 5 categories;
Borrowings – 3 facilities
Apart from projecting revenue and costs the model includes the possibility to model fixed assets, borrowings (amortising), dividends and corporate tax;
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. 
 
SUPPORT / MODIFICATIONS
 
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