Financial Models

This is an Excel template designed for any inventory manager, CFO, or Accounting department to better forecast expected cash requirements needed to pay for inventory over a 36-month period. All major assumptions are accounted for in order to provide the most accurate detail as possible.

The model works by letting the user enter assumptions about current inventory or can be used for a startup that is expected to have inventory cash requirements at some point in the future. Inputs include: Avg. Cost per Unit, Avg. Sale Price per Unit, Avg. Lead Time (days) Starting Inventory, Payment Terms (days), Min. Inventory Level (safety stock). Also, the user will enter historical data by month for up to 3 years worth of time and this will drive average sales per month (to account for seasonality). The user can then define a percentage change from that average sale amount for the first 12 months of the forecast and then the final 24 months will have a percentage change from the first 12 months. This is to get a more accurate expected inventory usage and defines the timing of when inventory will need to be ordered while not violating the safety stock input.