Once you are a registered and logged-in user, you can click ‘Assemble’ button within the description box for the Base Model on the Models’ page of the site.

Data input is completed in 5 stages, or Steps. Inputs such as labels for line items, financial and operational assumptions can be changed later off-line. However, structural parameters of the Model cannot be easily altered once the Model is purchased.

Hence, there are no default settings for structural parameters. The user needs to consider the options provided and to decide what configuration is desired. Structural data is entered at Step 1 and, partially, at Steps 2 and 3. Please read more below.

When assembling a model - to proceed to the next Step click ‘Next’ or return to previous Step by clicking ‘Back’. ‘Save’ button remembers all entered data. After saving you can leave the assembler and continue later by clicking ‘Continue’ button at the top of the User Account page. 

If you wish to globally restore default dummy values for assembled Model navigate ‘Back’ to Step 1 and click ‘Restore Default’ button. ‘Reset’ button restores default values locally for any current Step.

You can always refer to on-line version of the Manual for more details by pressing ‘Help’ button.

Step 1 configures key settings and parameters of your Model. Your assumptions inputted at this Step is what makes your Model unique and adapted to your modelling requirements. Your choices of language, timeline, number of product lines, debt elements and fixed asset classes are structural and cannot be easily altered once the Model is purchased. 

The following table summarise the choices available to users at Step 1:
 

Input field

Comment

Select your language

Current available in English or Russian. Note that switching Model’s language would completely reset your language environment including entry forms and commentary fields.

What is the start date?

This is not a structural input and can be easily changed off-line in the purchased copy of the Model.

The Model assembler would only allow a first date of any month to be the Model’s start date. Non-conforming day of the month entry will automatically revert to the first day of the month chosen by user. 

Note that, if your start data is not January 1st, then your reporting periods and annual summaries would not fall on calendar quarter and year ends.

What is the step interval?

Step interval can be set to year, quarter or month. By definition, the combination of the number of periods and periods’ step would set the timeline for your Model.

How many periods do your require?

Can be set to any integer value between 3 and 60. By definition, number of periods and periods’ step would set the timeline for your Model. For example, 20 monthly periods means your Model has a five year forecast horizon.

Please note that if a model is set up to run monthly or quarterly periods, you are not restricted to make the number of periods match full number of years. For example, your model's timeline can have 38 monthly periods, or equivalent to 3 years and 2 months. The annual summary for year 4 would pick up two last months of projections only.

If your selected timeline is very short (less than two years) or does not end at full year, additional consideration should be given to Terminal Value and IRR calculations. Please refer to section 3.12 of the Manual for details.

How many product lines in the model?

Any integer value within the allowed range of between 1 and 5. This is a structural feature provided for independent revenue and COGS assumptions for each product line. Please see details on revenue and COGS assumptions required to complete Step 2.

How many Fixed Assets Items in the model?

Can be any integer value between 1 and 5. This is a structural input and cannot be reversed once the Model is purchased. For each class of Fixed Assets you can create its own amortisation profile as described in Step 5 below. Once you download the Model you can populate data for your forecast capital expenditure (CapEx) program. However, CapEx profile of your Demo version would not contain any values or calculations.

Currency, select from list

Customise currency

Sets your Model’s currency. The Model does not conform to any currency coding standard so you can input any name or currency code as needed by typing a text value or a symbol of your choice. For example, your currency can be GBP or £. Alternatively, select most common currency codes from the pull down menu provided. This is not a structural input and can be easily changed off-line in the purchased copy of the Model.
Currency Unit Label for scales of your monetary units. Default value is in thousands, or 000s. Please note that this is a text label and not an automated feature of the Model. Default assumption is that pricing data is inputted per unit of sales whilst revenues and unit volume sales are assumed to have the same scale or factor. E.g. if your model is set to be in millions of currency units, then it is assumed that volume of sales is in millions of product units.
How many Debt Instruments Items in the model? Any integer value within the allowed range of between 1 and 5. Please note that the first debt element is an automatic cash sweep, or an overdraft facility. This balances your cash flows irrespective of whether your project or business is cash-generative or cash-consuming at any forecast period. All additional debt elements have manual repayment schedules. You can populate these in accordance with your repayment terms once the Model is purchased.
Your Corporate Tax Rate Sets the income (corporate) tax rate. The default (dummy) value is 20%. This is not a structural input and can be easily changed off-line in the purchased copy of the Model.

 

Step 2 has a combination of structural and non-structural elements. The structural elements refer to your choice of fixed vs. variable drivers for cost elements (see detailed description below). The assumptions for your sales forecasts and the values assigned to selected drivers are not structural and can be modified off-line.

Step 2 is broken into the number of sub-steps equivalent to the number of product lines selected upfront. Hence, if you only select one product line, only one screen will appear. If you select more than one product line, then you should expect to see Step 2A for product A followed by B, C, D or E depending on your selection for the number of product lines.

The following step-by-step guide is referring to one product only as each product input screen is identical to the others except for editable labels for each COGS line item. Labels can only be changed or edited at Step 2A.

Note that Step 2 headers react to your choice of inputs from Step 1. For example, if you configured the Model to be in USD and in 000’s, headers for Step 2 would incorporate your choices as shown in the table below (legends dependent on Step 1 are shown in [square brackets]).

At this Step you can (repeated for each product line):
 

Input field

Comment

Revenue Assumptions

For First Forecast Period

  Volume, [‘000s]

  Average Price, [USD]

  Revenue, [‘000s USD]

For [N] Next Forecast Periods

  Volume Growth, % per annum

  Price Growth, % per annum

Captures forecasts for physical sales volume and product pricing assumptions. Note that data for the first forecast period is entered in absolute terms as the base level for driving subsequent periods by growth rates.

If you do not wish to have independent drivers for volume and pricing, then set the volume of sales and its growth factor to 1 and 0 respectively. Your pricing and revenue lines will then show identical data.

Cost of Goods Sold Assumptions

[Raw Materials] * 5 elements

For First Forecast Period

  [‘000s USD] 

For [N] Next Forecast Periods

  Fixed / Variable Driver

  Input, %

Captures forecasts for cost of goods sold assumptions. Note that data for the first forecast period is entered in absolute terms as the base level for driving subsequent periods by growth or margin rates.

The fixed/variable driver input requires user to identify the type of driver for each cost element: fixed cost element will forecast out at growth rates set by user; variable cost element is modelled as a percentage of revenue (e.g. margin driven). This choice is structural and cannot be reversed once the Model is purchased. 

By default, all COGS elements are preset to be variable costs, while all overhead elements (next Step) are fixed costs. You can change COGS' fixed-variable assumption on item-by-item basis. Fixed-variable variation is unique for each product line. The choice does not have to be universally applied to all product lines.

Finally, note that you can edit names for each COGS element by typing over the default labels. This can be done at Step 2A for Product A only and will apply to all product tabs. You can always change your COGS labels off-line or by going back to Step 2A of the online assembly process.


Please note that the on-line entry form allows flat (over time) growth (margin) rates assumption only. This should not be a cause for concern. You purchases Model allows applying COGS growth / margin assumptions for each forecast period as needed. Please refer to working with the Model section below.

Separately, it is worth highlighting that the growth rates are set on annual basis for ease of reference. For example, if your Model is quarterly you do not have to apply a fraction of the year growth rate; the Model will do it for you automatically: for quarterly model inserting 10% annual growth rate for rental costs will translate in rental costs growing 2.5% quarter-on-quarter.

Please note that this Step has a combination of structural and non-structural elements. The structural elements give you an option of assigning fixed or variable drivers for each overhead cost elements (see detailed description below). Input values and editable labels for each driver are not structural and can be modified off-line.

Unlike Step 2, Step 3 is not broken into the number of product lines. The assumption is that overheads are whole at corporate level and are not allocated to or driven by separate product lines.

Note that Step 3 headers react to your choice of inputs from previous Steps. For example, if you configured the Model to be Quarterly, USD and in 000’s, headers for Step 3 would incorporate your choices as shown in the table below (legends dependent on Step 1 are shown in [square brackets]).
 

Input field

Comment

Overhead Assumptions

[Administration] * 5 elements

For First Forecast Period

  [‘000s USD] 

For [N] Next Forecast Periods

  Fixed / Variable Driver

  Input, %

Captures forecasts for overhead assumptions. Note that data for the first forecast period is entered in absolute terms as the base level for driving subsequent periods by growth or margin rates.

The fixed/variable driver input requires user to identify the type of driver for each cost element: fixed cost element will forecast out at growth rates set by user; variable cost element is modelled as a percentage of revenue (e.g. margin driven). This choice is structural and cannot be reversed once the Model is purchased. 

By default, all overhead elements are preset to be fixed costs. You can change this assumption on item-by-item basis as well as edit labels by typing over default names in the left column of the entry form.


Please note that the on-line entry form allows flat (over time) growth / margin rates assumption only. This should not be a cause for concern. Your purchased Model allows applying overhead growth and margin assumptions for each forecast period as needed. Please refer to Section 3 of the Manual.

Separately, it is worth highlighting that the growth rates are set on annual basis for ease of reference. For example, if your Model is quarterly you do not have to apply a fraction of the year growth rate; the Model will do it for you automatically: for quarterly model inserting 10% annual growth rate for rental costs will translate in rental costs growing 2.5% quarter-on-quarter.

At this step you can customise labels for balance sheet items shown in editable fields as well as replace default values for opening balance sheet positions and related drivers with your own inputs. Alternatively, you can skip this step and change labels and values off-line in purchased copy of the Model. If you want to change the number of debt instruments present in the capital structure of your Model please go back to Step 1. Please refer to the Manual for more details by pressing the Help button at the top of the screen.

The following table summarise the choices available to users at Step 4 of the assembly (items shown in [*] are editable at this Step):

Input field

Comment

‘Clear Balance’ button

Opening balance sheet can be set to zero wholesale by clicking on the Clear Balance button on the right hand side of the input form. It will null all balance sheet items with one click. This may be useful if your project or business is a green field and has no prior history. 

Long Term Assets

  Gross PP&E

  Accumulated Depreciation

  Net Fixed Assets

  Financial Investments

  Deferred Tax Assets

  [Other Long Term Assets]

Current Assets

  Cash

  [Debtors]

  [Inventory]

  [Other CA]

Current Liabilities

  [Creditors]

  [Short Term Revolver]

  [Other CL]

Long Term Liabilities

  [Bank Debt Tranche A – D]

  [Other Long Term Liabilities]

Equity & Reserves

Allows populating data for your opening balance sheet items. The balance sheet structure is fixed (except for number of debt elements selected at Step 1) and cannot be changed.

Note that Step 4 field legends react to your choice of inputs from previous Steps. For example, if you configured your Model to have two debt facilities and custom named them, Step 4 would incorporate your choices (legends dependent on previous Steps are shown in [square brackets]).

If your historic balance sheet has more items than what is provided for by the assembler, we suggest you analytically aggregate these to match the number of items allowed in the Model.

This step also allows for entry of interest rates assumptions for cash/debt items and days turnover ratios for calculating the working capital requirements. These are not structural changes and can be changed later off-line.

To change interest rates assumptions directly in the Model go to the opening balance sheet tab. Working capital drivers can be found in the working capital tab of the Model.

Check

You cannot proceed to the next input step if the total assets and liabilities values do not match. The check field at the bottom of the input screen would indicate an error if there is a mismatch.

 

At this final assembly step you can customise labels for CapEx classes as well as replace default values for depreciation and amortisation rates expressed in years of useful life, or remaining useful life for existing assets.

You can skip this Step and change labels and values off-line in purchased copy of the Model. If you want to change the number of CapEx classes present in the CapEx program of your Model please go back to Step 1.

Input field

Comment

Existing Fixed Assets

Please note that the existing fixed assets are considered as one single group of assets with one average input for their remaining life.  

[Buildings] * [5]

The number of classes for new assets should match your configuration entered at Step 1 and you can edit names and assign depreciation rate for each class.


Please note that the input form does not allow for entry of your CapEx programme. It should not be a cause of concern that the demo version does not show any investments going forward throughout the forecast periods. These can be populated off-line when working with the Excel file as described in the following section of the Manual.

You are done customising your Model. You can now request a Demo or buy a full version of the model on the next screen. Click 'Next'.

After completing Step 5 you can click ‘Next’ and select ‘Request Demo’ button. The demo version of the Model would be assembled and appear in your User Account available for download. You will receive a notification via email that your Demo is ready. Requesting a demo is free.

Demo version of the Model would not have any live formulae or links. Otherwise all structural elements, formats, settings and labels would be exactly as profiled by you during the on-line assembly stage. Please study the demo to ensure that all the structural and labelling elements come out as desired.

If something is not right at this stage, you can assemble a new model with revised input parameters. Alternatively, you can proceed to Buy options and get a fully functioning Model delivered to your User Account. You can always convert any of your Demos stored in the User Account to a live working Model by clicking on Buy option in your User Account next to the Demo Model you wish to purchase.

You can download your Demo version or a full purchased version of the Model from your User Account page as many times as you like.