I have had quite a bit of interest in the made-to-order financial model over the last year and with that has come a few modifications that have made sense to use on the master version of this template. Let's dive in!
Template: Made-to-Order Manufacturing Financial Model
Updates:
- Added a line of credit facility. This makes it easy for the user to go in and manually define any loan draws over time on a monthly schedule. There is also a manual input for loan repayment and interest will auto calculate based on the balance each month, if there is a balance. The balance sheet, cash flow statement, income statement, and all relevant summaries have been updated with this assumption. Ratios impacted include the debt-service-coverage ratio. This is a great tool to help manage cash flow and the cost of borrowing over time. I've also displayed helper columns that show the operational cash flow and value of accounts receivable and inventory over time.
- I also added a brand new alternative version of the MTO manufacturing model that also has the line of credit module. However, it is also updated with an input to automatically account for inflation of prices and expenses. (half of the fixed expenses in each cost section are manual and half you just enter the first year cost and the following years will follow the % increase input. Each row is configured independently.
- Also, on the alternative version I made the fixed expenses tab all be annual figures instead of monthly. You can adjust what that cost is yearly, but the amount you enter is now the expected annual amount instead of the expected monthly amount.
