Body Shop Case

Only available on StudyMode
  • Topic: Revenue, Assumption of Mary, The Body Shop
  • Pages : 2 (594 words )
  • Download(s) : 99
  • Published : July 2, 2012
Open Document
Text Preview
The Body Shop International PLC 2001 : An Introduction to Financial ModellingFamily Syndicate 0.6 72.34 - 0.6 241.65 - 0.6 288.25 -Sensitivity Analysis (Overdraft and Excess Cash to COGS/SALES)2002 2003 2004COGS/SALES OverdraftsExcessCashCOGS/SALES Overdrafts ExcessCash

COGS/SALES
Overdrafts
ExcessCash
13.65 - 175.34 - 213.31 -0.01 - 17.24 0.01 140.43 - 0.01 173.87 -0.03 - 8.41 0.03 150.40 - 0.03 185.13 -0.05 0.41 - 0.05 160.38 - 0.05 196.40 -0.06 4.83 - 0.06 165.36 - 0.06 202.04 -0.07 9.24 - 0.07 170.35 - 0.07 207.67 -0.08 13.65 - 0.08 175.34 - 0.08 213.31 -1 419.62 - 1 634.08 - 1 731.68 -Sensitivity Analysis (Overdraft and Excess Cash to COGS/SALES)2002 2003 2004 INVENTORIES/SALES OverdraftsExcessCashINVENTORIES/SALES OverdraftsExcessCashINVENTORIES/SALES OverdraftsExcessCash 13.65 - 175.34 - 213.31 -0.1 0.42 - 0.1 160.38 - 0.1 196.40 -0.13 13.65 - 0.2 210.24 - 0.2 252.75 -0.15 22.48 - 0.3 260.10 - 0.3 309.09 -0.2 44.54 - 0.4 309.97 - 0.4 365.44 -0.25 66.60 - 0.5 359.83 - 0.5 421.79 -0.27 75.43 - 0.6 409.69 - 0.6 478.13 -

The Body Shop International PLC 2001 : An Introduction to Financial ModellingFamily Syndicate 0.3 88.67 - 0.7 459.56 - 0.7 534.48 -3.

How much debt financing needed? What are the key drivers of this need and how muchdebt needs vary as the assumptions vary? E
FN
(External
F
inancing
N
eeded) =
Assets/Sales x Sales ± Spontaneous liabilities/Sales x Sales ± PM
x
P
rojected Sales x (1-d)
2001 2002 2003 2004Assets 230.1 270.55 305.72 345.46Sales 539.79 609.96 689.26 778.86Sales - 70.17 79.3 89.6SpontaneousLiabilities10.7 16.91 19.11 21.59 Net Income 318.47 359.87 406.65 459.52Profit Margin(PM)0.59 0.59 0.59 0.59Projected Sales 609.96 689.26 778.86 -Dividen 10.9 10.9 10.9 10.9d 0.034 0.03 0.027 0.024 y

EFN (2001-2002) =230.1/539.79 x 70.17 ± 10.7/539.79 x 70.17 ± 0.59 x 609.96 x ( 1- 0.034 ) = - 318.86 y

EFN (2002-2003) =270.55/609.96 x 79.3 ± 16.91/609.96 x 79.3 ± 0.59 x 689.26 x ( 1-0.03) = - 361.49 y

EFN...
tracking img