Every figure bluprnts derives from the statements, and the calculation behind it. All of them are projections of the statements, which is why they always agree with them.
Trading#
| Metric | Calculation |
|---|
| Revenue | Sum of the revenue lines over the period |
| Gross profit | Revenue − cost of sales |
| Gross margin | Gross profit ÷ revenue |
| Operating profit (PBIT) | Gross profit − operating costs − depreciation |
| Operating margin | Operating profit ÷ revenue |
| Profit before tax | Operating profit + net interest |
| Profit after tax | Profit before tax − tax |
| Net margin | Profit after tax ÷ revenue |
| Revenue growth | This year's revenue against last year's |
| Average monthly profit | Profit after tax ÷ months in the period |
Cash#
| Metric | Calculation |
|---|
| Opening cash | The bank balance the forecast starts from |
| Closing balance | The bank balance at the end of the window |
| Incoming / Outgoing | Total cash in and out over the period |
| Net flow | Change in balance ÷ months |
| Cash low point | The lowest the closing balance reaches, and the month |
| Max cash needed | The magnitude of the deepest point — the largest hole the plan has to fund |
| Average monthly burn | Average net outflow across the months that burn cash |
Survival#
| Metric | Calculation |
|---|
| Runway | The number of months before the closing balance first goes negative. Fully funded when it never does — across the modelled period only |
| Cash runs out | The month the balance first goes negative |
| Breakeven | The month profit after tax holds from. No breakeven when the plan never turns profitable |
Balance sheet#
| Metric | Calculation |
|---|
| Total assets | Current + non-current assets |
| Total liabilities | Current + non-current liabilities |
| Net assets | Total assets − total liabilities |
| Working capital | Current assets − current liabilities |
| Short-term cover (current ratio) | Current assets ÷ current liabilities. A dash when nothing is owed short-term |
Per unit#
| Metric | Calculation |
|---|
| Revenue per unit | Retail price + shipping price |
| Cost per unit | Production + storage & distribution + shipping cost |
| Margin per unit | Revenue per unit − cost per unit |
| Margin % | Margin per unit ÷ revenue per unit |
Two things worth knowing#
Runway is measured against the modelled period. A forecast that ends before the cash does reports Fully funded, which is true of the window and says nothing beyond it. See Forecast window.
Max cash needed is the number to fund against, not the closing balance. A plan can end the year comfortably and still need a large facility to get through month five.
