Balance sheet
Capitalization
Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts
Saturday, November 10, 2007
Friday, November 9, 2007
finance
Having in mind that all the finances are approximate just to know the profitability, I made a set of assumptions and created all the statements. Well, not all of them, causeI really hate making cash flow statement, that's why I took only approximate one for market capitalization calculation.
1. PnL.
a. I put approximate occupancy (I really understand that it is a bit too high, but nevertheless...) and average price. Simple revenue model!
b. CoGS are not really relevant, cause in case of cruise we have huge overheads, and variable costs are not that big. I just put 15%.
c. OVH are divided into the following pieces:
- yacht operating (fuel, crew salaries, repairment, putting on water, insurance and even property tax), which are considered as 10% of yacht cost (benchmark I received from one of the articles),
- dry land costs - office salaries and rents,
- bad debt - just to make a provision,
- marketing - which is mostly for website creation and contacts, the excess amount will be put into sales bonus, cause the team really matters here and all marketing should be personal.
d. Depreciation - straightforward method of 4,5 mio of investments (benchmark received from my friend who reall thought of building luxury yacht at Admiral Shipyards of St.Petersburg) for 30 years (time before next big repairment).
e. Corporate tax - 32%.
2. Balance sheet.
a. Cash - balancing line.
b. AR - 60 day turnover.
c. AP - 30 day turnover.
d. Non-comm creditors - 5% of GA+Mrkg+Design
3. Marcap. Discounted cash flow method.
a. WACC - 12% (just more or less relevant).
b. Growth - 2%
c. 10 years period.
Why 10 years? Well, because I can calculate). To be serious, first couple of years normally we spend to generate positive cashflow and profit, 3-5 more to cover initial investments, and 3-5 more to generate investor's revenue. Or just following the advise of Paz Ambrozy, VC and our finacial enterpreneurship professor.
I will make a screenshots of files and post later.
1. PnL.
a. I put approximate occupancy (I really understand that it is a bit too high, but nevertheless...) and average price. Simple revenue model!
b. CoGS are not really relevant, cause in case of cruise we have huge overheads, and variable costs are not that big. I just put 15%.
c. OVH are divided into the following pieces:
- yacht operating (fuel, crew salaries, repairment, putting on water, insurance and even property tax), which are considered as 10% of yacht cost (benchmark I received from one of the articles),
- dry land costs - office salaries and rents,
- bad debt - just to make a provision,
- marketing - which is mostly for website creation and contacts, the excess amount will be put into sales bonus, cause the team really matters here and all marketing should be personal.
d. Depreciation - straightforward method of 4,5 mio of investments (benchmark received from my friend who reall thought of building luxury yacht at Admiral Shipyards of St.Petersburg) for 30 years (time before next big repairment).
e. Corporate tax - 32%.
2. Balance sheet.
a. Cash - balancing line.
b. AR - 60 day turnover.
c. AP - 30 day turnover.
d. Non-comm creditors - 5% of GA+Mrkg+Design
3. Marcap. Discounted cash flow method.
a. WACC - 12% (just more or less relevant).
b. Growth - 2%
c. 10 years period.
Why 10 years? Well, because I can calculate). To be serious, first couple of years normally we spend to generate positive cashflow and profit, 3-5 more to cover initial investments, and 3-5 more to generate investor's revenue. Or just following the advise of Paz Ambrozy, VC and our finacial enterpreneurship professor.
I will make a screenshots of files and post later.
VC presentation
Well-well (heh, that's my favourite word to start the blog post), it's been a long time since my last project update here. Meanwhile, I presented the idea to "investors board", but I was not prepared well, so mostly I showed my beleif into the project, emphasized the team and let people know me. I could do better of course, but at least I made a full stop of idea searching - Dream Yacht appeared.
Couple of days I spent searching in the internet all relevant information to understad supply of charter services (luxury and normal) and realize costs. Or at least receive benchmarks, cause your first projections never come true, but you need to know if the business is going to bring money.
Since it is study project, I made some assumptions about costs not to go deeply into details: crew salaries were considered as a part of Yaucht service, investments were brought to required amount and first calculations were made.
When I realized that from 5 mio of investments 1 mio went to cash, increased Yacht investments and gave up 1 mio of net income in 10 years.
Still,it is my personal record of making all the statements and markcap calculation within 40 minutes (of course, I had preliminary information and used templates from the other project), but still...
And presentation was made. Having in mind, that it is class exercise and I know "the investors", my aim was just to get people remember me.
All the files and slides will follow soon.
Couple of days I spent searching in the internet all relevant information to understad supply of charter services (luxury and normal) and realize costs. Or at least receive benchmarks, cause your first projections never come true, but you need to know if the business is going to bring money.
Since it is study project, I made some assumptions about costs not to go deeply into details: crew salaries were considered as a part of Yaucht service, investments were brought to required amount and first calculations were made.
When I realized that from 5 mio of investments 1 mio went to cash, increased Yacht investments and gave up 1 mio of net income in 10 years.
Still,it is my personal record of making all the statements and markcap calculation within 40 minutes (of course, I had preliminary information and used templates from the other project), but still...
And presentation was made. Having in mind, that it is class exercise and I know "the investors", my aim was just to get people remember me.
All the files and slides will follow soon.
Subscribe to:
Posts (Atom)
