Likewise, the forecasts of inventory at cost, at the end of each month, will be calculated by multiplying the average daily cost of sales in the next month by the number of Days of Inventory. If you expect inflation-driven changes in purchase prices to happen over time, enter respective parameters into the Cost Increase fields in your financial model for grocery stores. Leave it blank if you do not expect any pricing seasonality:Īs a matter of fact, if you expect selling prices to increase over time (for example, due to inflation), enter the respective increase rate along with its frequency into the Price Increase fields.īesides, the projections of sales revenue and cost of sales will be calculated automatically. Similarly, the Seasonal Discounts table allows you to account for seasonal fluctuations of prices separately from fluctuating physical quantities. If you do not expect changes in sales over a year, you can leave this blank. The Seasonal Sales Trend table allows you to enter, for each category, and each month of a year, percentages of average sales (in physical units). To account for seasonal changes, use the Seasonal Sales Trend and Seasonal Discounts tables. For each category, enter the projected Average Daily Revenue. In the Sales & Inventory section, select respective goods categories in the Sales Forecast table. REVENUE & COST MODEL INPUTS OF GROCERY STORE FINANCIAL MODEL 1. The Dashboard also contains a navigation pane allowing you to access any part of the template. But, if you do not expect your sales to change from year to year, you can leave this table blank. Finally, Shrinkage & Theft percentage shows how much of your inventory is going to be lost rather than sold.Ī table of sales trends allows you to set long-term trends in order to account for overall sales over the years.Days of Inventory is a number of days showing how fast each category of goods can be sold, in other words how many days of sales your inventory is going to cover.Credit Period is the number of days showing how long it is going to take on average to pay for purchased goods.Markup percentage shows how much you are going to add to the hard cost of goods in order to get regular selling price before discounts.Assumptions here have the following meanings: You have to enter a list of categories and related assumptions. Finally, enter Income Tax Rate that will affect net profit after taxation.The Discount Rate will be applied to the calculation of Net Present Value (NPV) of the project.Also, enter a code of the currency in which all monetary amounts will be displayed in.Afterward, enter the Start Date of the project.You can set if 2 to 10 years, just pick a relevant value from the drop-down list Set a length of the Projection Period.Model Configuration in Grocery Store Financial Model Template Lastly, a table of long-term sales trends.Secondly, a table of goods’ categories.In general, the Dashboard section contains settings and assumptions for your workbook: You also have to understand clearly how much of your own money you will be able to put into the business, along with the loans available to cover any deficit of capital. It also takes into account the effect of taxation. This Excel template allows you to calculate widely used investment metrics such as payback period, discounted payback period, Net Present Value (NPV) and Internal Return Rate (IRR). Grocery Store Financial Model Excel Template Features: So, let us have a look at the Grocery Store Financial Model tool. Besides, you can use this grocery store financial model to produce nicely and professionally looking pro forma statements and charts to present to lenders or co-investors. Moreover, it is quite simple and intuitively understandable, even for newcomers.
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