Parameters
Tax rate 35%
Discount rate 12%
Table of Assumptions
Ratio/Growth Rate Projected Rati
2017 2018 2019
Sales growth 6.00% 5.50%
COGS/Sales 73.60% 74.00%
Op Expenses/sales 22.80% 22.80%
Sales/PPE, net 13.1 13.1
AR DOH 40 42
Inv DOH@ COGS 45 45
AP @ COGS 19.3 19.3
Table of Free Cash Flows
2017 2018 2019
NOP calculation
Sales 27,900,000 29,574,000 31,200,570
- COGS 21,766,464 23,088,422
- Operating Expenses 6,742,872 7,113,730
= EBIT 1,064,664 998,418
- Tax on EBIT 372,632.40 349,446.38
= NOP 692,032 648,972
Change netPPE calculation
netPPE 2,113,636 2,257,557.25 2,381,722.90
Change in netPPE 143,921 124,166
Change in NOWC calculation
Operating current Assets
Accouts Receivable 2,751,781 3,240,986.30 3,590,202.58
+ Inventories 2,580,865 2,683,536.66 2,846,517.76
= Operating Current Assets 5,332,645 5,924,523 6,436,720
Operating current liabilities
Accounts Payable 1,082,070 1,150,939.06 1,220,839.84
= Operating current liabilities 1,082,070 1,150,939 1,220,840
NOWC (current ass - current liab) 4,250,575 4,773,584 5,215,880
Change in NOWC 523,009 442,297
FCF calculation
NOP
- Change in netPPE
- Change in NOWC
= FCF
FCF growth rate calculation
FCF growth
Projected Ratios/Growth Rates
2020 2021 2022 2023 2024
5.00% 4.00% 4.00% 4.00% 4.00%
74.00% 74.00% 74.00% 74.00% 74.00%
22.80% 22.80% 22.80% 22.80% 22.80%
13.1 13.1 13.1 13.1 13.1
44 45 45 45 45
45 45 45 45 45
19.3 19.3 19.3 19.3 19.3
2020 2021 2022 2023 2024
32,760,599 34,071,022 35,433,863 36,851,218 38,325,267
24,242,843 25,212,557 26,221,059 27,269,901 28,360,697
7,469,416 7,768,193 8,078,921 8,402,078 8,738,161
1,048,339 1,090,273 1,133,884 1,179,239 1,226,409
366,918.70 381,595.45 396,859.27 412,733.64 429,242.99
681,420 708,677 737,024 766,505 797,166
2,500,809.05 2,600,841.41 2,704,875.06 2,813,070.07 2,925,592.87
119,086 100,032 104,034 108,195 112,523
3,949,222.83 4,200,537.01 4,368,558.49 4,543,300.83 4,725,032.87
2,988,843.64 3,108,397.39 3,232,733.29 3,362,042.62 3,496,524.32
6,938,066 7,308,934 7,601,292 7,905,343 8,221,557
1,281,881.83 1,333,157.10 1,386,483.39 1,441,942.72 1,499,620.43
1,281,882 1,333,157 1,386,483 1,441,943 1,499,620
5,656,185 5,975,777 6,214,808 6,463,401 6,721,937
440,304 319,593 239,031 248,592 258,536
