Please login here to save this document to a list.
If you don't have an account, you can register for free here.
BENEFITS OF DOCUMENT
DOCUMENT DESCRIPTION
A financial model for a private school business serves as a comprehensive tool to forecast and analyze the financial performance of the institution. It incorporates various assumptions, variables, and metrics to generate projected financial statements and evaluate the school's income, expenses, profitability, and cash flow.
The financial model is a dynamic and robust tool designed to provide a clear understanding of financial performance. It incorporates key assumptions, variables, and metrics to generate detailed projections of revenue, expenses, profitability, and cash flow.
Key Components of the Financial Model:
Student Enrollment and Tuition: The financial model accounts for projected student enrollment. It also incorporates tuition rates and payment terms to estimate the school's revenue from tuition fees.
Other Revenue Sources: In addition to tuition fees, the financial model considers other sources of revenue, such as fundraising events. These revenue streams are included in the model to provide a comprehensive picture of the school's income.
Operational Expenses: The model captures various expenses, including staff salaries and benefits, facility maintenance and utilities, teaching materials and supplies, administrative costs, marketing expenses, and others. It allows us to analyze cost drivers and optimize expenditures.
Financial Aid and Scholarships: The financial model incorporates scholarships, accounting for the estimated amount of assistance provided to eligible students. This helps us evaluate the impact of these programs on revenue and expenses.
Capital Expenditures: As a private school, we may have capital expenditures related to facility expansion, equipment purchases, technology upgrades, or infrastructure improvements. The financial model factors in these investments and their associated costs to assess their impact on the financial position.
Financial Statements: The financial model generates projected financial statements, including the income statement, balance sheet, and cash flow statement. These statements provide a comprehensive overview of financial performance, position, and liquidity.
Benefits of the Financial Model:
Financial Planning and Budgeting: The financial model serves as a basis for financial planning and budgeting. It helps us set realistic targets, allocate resources efficiently, and monitor progress towards financial objectives.
Resource Allocation: The financial model assists in making strategic decisions regarding resource allocation. It helps us prioritize investments, and optimize operations for sustainable growth.
Fundraising and Investor Communication: The financial model enhances the ability to communicate financial projections and performance to potential donors, investors, or lenders. It demonstrates financial understanding and supports fundraising efforts.
Risk Management: By incorporating different scenarios and stress-testing assumptions, the financial model allows us to identify and mitigate potential risks. It helps us plan contingencies and make informed decisions to ensure financial resilience.
In conclusion, the financial model is a valuable tool that enables us to forecast and analyze the financial performance of a private school business. It provides us with insights, supports decision making, and helps us achieve financial objectives while ensuring the long-term sustainability of the school.
———————————————————————————————————————————————
MODEL GUIDELINES
So, a quick overview of the model, in the contents tab you can see the structure of the model and by clicking on any of the headlines to be redirected to the relevant worksheet.
On the manual tab you can feed the general information for the model such as: project name & title, responsible, timeline of the model and date and currency conventions.
Additionally, there is a description of the color coding of the model in the same tab. Inputs are always depicted with a yellow fill and blue letters, call up (that is direct links from other cells) are filled in light blue with blue letters while calculations are depicted with white fill and black characters.
There is also color coding for the various tabs of the model. Yellow tabs are mostly assumptions tabs, grey tabs are calculations tabs, blue tabs are outputs tabs (that is effectively results or graphs) and finally light blue tabs are admin tabs (for example: the cover page, contents, and checks).
Moving on to the Inputs, in this tab, the user needs to adjust the business drivers in the yellow cells. The revenue drivers consist of the number of students and their characteristics, including pricing and payment patterns. The costs to support the revenue drivers of the business are split into cost of services sold and oeprating expenses. Other drivers include receivables days, payable days, inventory days and income tax. Additional assumptions include depreciation period in years (for both the initial investment and subsequent capital expenditures), debt gearing, interest on loans (term loan, overdraft), and share capital.
Calculations: this is where all calculations are performed. The revenues are calculated based on the previous inputs and the growth rates, and by deducting the operating costs, the operating profit is resulting. Based on the assets financed and the gearing of the financing the interest and depreciation are occurring. By using the working capital assumptions, the impact of the business cycle is presented. Finally, depending on the existing debt financing and forecast assumptions the loan balances are calculated (Term loan, overdraft).
In the Financial Statements tab: everything is aggregated here into the relevant statements: profit and loss, balance sheet and cash flow on a yearly basis.
In the summary tab you are able to see a high-level report with the main financial ratios. It can be readily printed on one page for your convenience.
Moving to the Valuation tab, a free cash flow to the firm valuation is performed leading to an enterprise value. There is also a calculation of the Net Present Value, as well as an Internal Rate of Return, Profitability Index, Payback and Discounted Payback Period. Additionally, a sensitivity analysis is performed on the equity value of the business by using the discount rate and the growth rate to perpetuity as sensitivity parameters.
In the Graphs tab: Various graphs present the business metrics, revenues, investment & operating expenses, profitability metrics, additionally balance sheet and cash flow metrics, and we finish with discount rates, feasibility metrics and valuation graphs.
In the Break-Even tab, you can find a break-even analysis and see how many students and sales you need to break even at an operational level.
Checks: A dedicated worksheet that makes sure that everything is working as it should!
Important Notice: Yellow indicates inputs and assumptions that the user can change, blue cells are used for called up cells, and white cells with black characters indicates calculation cells.
Got a question about the product? Email us at [email protected] or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Integrated Financial Model, Education Excel: Private School Financial Model - 10+ Year DCF & Valuation Excel (XLSX) Spreadsheet, Big4WallStreet
ABOUT THE AUTHOR: BIG4WALLSTREET
We help small and midsize businesses' leaders with their strategic problems by creating or improving financial models, implementing tools to drive efficiency, performance, and better decision making.
[read more]
With over a decade of experience in Financial & Business Modeling / Planning, Performance & Analysis, we have developed strong business understanding across diverse industries (Energy, Shipping, Manufacturing, Retail, Oil & Gas, Infrastructure, Food & Beverages, Agriculture, Healthcare, Telecoms, Real Estate, Construction & Hospitality), as well as strong capabilities across a range of financial modeling solutions.
We are one of the few financial modelers to be certified from both the Corporate Finance Institute (Financial Modeling & Valuation Analyst, Business Intelligence and Data Analyst), and the Financial Modeling Institute (Advanced Financial Modeler, Certified Financial Modeler). We build integrity and trust by providing high-quality tailor-made solutions to our clients.
Furthermore all these models can be tailor made upon your request in order to meet any special requirements for your projects should you not find something that suits you.
Big4WallStreet has published 48 additional documents on Flevy.
DOCUMENT DETAILS
![]() | Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more. To receive this free download, enter your email address below and click the "Email Me" button. |
|
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me. Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current. Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world." – Roberto Pelliccia, Senior Executive in International Hospitality
|
|
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it's like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead."
– Roderick Cameron, Founding Partner at SGFE Ltd
|
|
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for the customer, Flevy and the various authors. This is truly a service that benefits the consulting industry and associated clients. Thanks for providing this service. "
– Jim Schoen, Principal at FRC Group
|
|
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.
Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I have been able to exceed expectations and deliver quality advice and solutions to my clients. The quality and expertise of the authors are exemplary and gives me great confidence to use as part of my service offerings. I highly recommend this company for any consultant wanting to apply international best practice standards in their service offerings. " – Nishi Singh, Strategist and MD at NSP Consultants
|
|
"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."
– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
|
|
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."
– David Harris, Managing Director at Futures Strategy
|
|
"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.
Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten. In today's environment where there are so many challenges and there is the need to make the right decisions in a short time, with so much scattered information, we are fortunate to have Flevy. Flevy investigates, selects, and puts at our disposal the best of the best to help us be successful in our work." – Omar Hernán Montes Parra, CEO at Quantum SFE
|
|
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."
– Michael Evans, Managing Director at Newport LLC
|
![]() Do You Want to Get Lean?
We've assembled 40 Lean Six Sigma guides: Lean Management, Six Sigma, Strategy Planning, Process, and Change Management.
|
![]() Waste Too Much Time on PowerPoint?
Get our FREE PowerPoint Plugin (Flevy Tools) for creating common business diagrams, from Gantt Charts to Harvey Balls.
|
![]() Do You Run a Consulting Firm?
Learn how to level the playing field with global consulting firms, like McKinsey, BCG, Bain, E&Y, and Accenture.
|
![]() Need Help with PowerPoint or Excel?
Have our highly trained staff create the exact documents you need. We offer PowerPoint and Excel document creation services.
|
© 2012-2023 Copyright. Flevy LLC. All Rights Reserved.