Basic finance math, is exactly what it says on the tin. Basic, but it's surprising how many simple mistakes can be made with it.
- Growth Rate (e.g. Revenue Growth) = New Value/Old Value - 1
- Projection using growth % = Value * (1 + Growth Rate)
- Margin or Item as % of something = Value/Value
- COGS = Revenue * (1 - Gross Margin %)
- Change in Current Assets & Change in Current Liabilities... This can be worked out by Adding When it Comes to Liabilities, and Subtracting When It Comes to Assets
- Capex as a % of change in revenue means you do Capex/Revenue-Old Revenue... And if you have a % change in revenue, and you want to find the Capex... then multiply that % change in revenue by the change in revenue
- If something is x%, then the percentage that it's not is (1-x%)
- In this case, you want to find Implied Full-Time Employees. To do this, you do equation: SR/E = SRperE You have to find E, so re-arrange.
- MoM Multiple = Final Proceeds/Initial Investment
- IRR will be (MoM)^(1/Exit Year)-1
- 0 and 1 can be used as toggle switches, so you can do (Cell * 1) or (Cell * 0)... it let's you incorporate a True/False like statement
- To increase something, e.g. # of Hotels, you can either apply a growth rate, or you can increase by an absolute number. Both are modelled in similar way.
- =-SUM($I221:N221) will let you do a cumulative sum, because it lets you keep one column locked whilst you slide to the right.
- One formula for Dilution is (just stick to this one):
- Value * (1 - Dilution %)