Long-Term Financial Planning & Growth
Companies create this balance sheet when using the percentage of sale method. It will be unbalanced until the company determines how much external financing it needs.
This rate deals with how much a company can grow in a given amount of time with no money borrowed. Companies exceed this if they borrow funds.
Financial Planning Model: Sales Forecast
A way for businesses to predict the percentage that their sales will grow. This propels the financial planning model forward.
A rate that can be used to ascertain the uppermost amount of growth a company can complete without drawing on external financing.
This is a method for financial forecasting that can be used to annually forecast a business's sales growth.
A model that executives can use to assess how business strategies may effect their organizations in the future.
A process in financial planning that involves figuring out where to use the resources available to a company in order to fulfill organizational goals.
These are valuable things that are found in nature. They can impact business growth. An example of this would be an increase in the cost to transport goods due to expensive fuel.
Internal Growth Rate (IGR): Formula
Retained Earnings / Total Assets
Systems set up by a business for controlling acquisitions and making sure the use of financial resources follows a plan.
Financial Planning Model: Economic Assumptions
An element of the financial planning model that focuses on external factors, such as weather, along with the economy and market sector.
Sources of financing from outside of a company. You may obtain this kind of financing by getting a loan or by selling some of your company's stocks.
These are investments that take a long time to recover their initial costs. Expensive equipment is an example.
These budgets are used by a business to determine how to pay for a capital investment.
External Financing Needed (EFN)
This tells us how much financing a company needs from outside sources.
This aspect of financial planning focuses on analyzing the financial viability of a business venture. You do this by assessing its total costs and possible profits.
We use this term to refer to the way money moves into a business or out of the business.
Financial Planning Model: Pro Forma Financial Statement
You can create this statement, which may forecast future financial statements, as part of the financial planning model.
A financial statement that records assets, liabilities, and owner's equity.
Factors that influence whether a company grows or falters. They can include natural resources, employees who are available to work, consumers, and technology.
External Financing Needed (EFN): Formula
Change in Assets - Change in a Company's Current Liabilities - Company's Retained Earnings
This document is primarily used in financial planning to assess potential revenues and expenses that can occur during a specific length of time.
A special kind of budget that contains separate but interdependent budgets. Estimates of these budgets may be influenced by one another.
Forecasted Sales Growth: Formula
Current Sales x (1 + Growth Rate/100)
Percentage of Retained Earnings: Formula
Retained Earnings / Net Income x 100
Financial Planning Model: Plug
This financial planning model element is a backup measure that a company can use to handle potential gaps in the plan.
Long-Term Financial Planning & Growth
Companies create this balance sheet when using the percentage of sale method. It will be unbalanced until the company determines how much external financing it needs.
This rate deals with how much a company can grow in a given amount of time with no money borrowed. Companies exceed this if they borrow funds.
Financial Planning Model: Sales Forecast
A way for businesses to predict the percentage that their sales will grow. This propels the financial planning model forward.
A rate that can be used to ascertain the uppermost amount of growth a company can complete without drawing on external financing.
This is a method for financial forecasting that can be used to annually forecast a business's sales growth.
A model that executives can use to assess how business strategies may effect their organizations in the future.
A process in financial planning that involves figuring out where to use the resources available to a company in order to fulfill organizational goals.
These are valuable things that are found in nature. They can impact business growth. An example of this would be an increase in the cost to transport goods due to expensive fuel.
Internal Growth Rate (IGR): Formula
Retained Earnings / Total Assets
Systems set up by a business for controlling acquisitions and making sure the use of financial resources follows a plan.
Financial Planning Model: Economic Assumptions
An element of the financial planning model that focuses on external factors, such as weather, along with the economy and market sector.
Sources of financing from outside of a company. You may obtain this kind of financing by getting a loan or by selling some of your company's stocks.
These are investments that take a long time to recover their initial costs. Expensive equipment is an example.
These budgets are used by a business to determine how to pay for a capital investment.
External Financing Needed (EFN)
This tells us how much financing a company needs from outside sources.
This aspect of financial planning focuses on analyzing the financial viability of a business venture. You do this by assessing its total costs and possible profits.
We use this term to refer to the way money moves into a business or out of the business.
Financial Planning Model: Pro Forma Financial Statement
You can create this statement, which may forecast future financial statements, as part of the financial planning model.
A financial statement that records assets, liabilities, and owner's equity.
Factors that influence whether a company grows or falters. They can include natural resources, employees who are available to work, consumers, and technology.
External Financing Needed (EFN): Formula
Change in Assets - Change in a Company's Current Liabilities - Company's Retained Earnings
This document is primarily used in financial planning to assess potential revenues and expenses that can occur during a specific length of time.
A special kind of budget that contains separate but interdependent budgets. Estimates of these budgets may be influenced by one another.
Forecasted Sales Growth: Formula
Current Sales x (1 + Growth Rate/100)
Percentage of Retained Earnings: Formula
Retained Earnings / Net Income x 100
Financial Planning Model: Plug
This financial planning model element is a backup measure that a company can use to handle potential gaps in the plan.
