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Unseen case: Corvale Instruments · Test

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Corvale Instruments Ltd.$ in thousands

D17

Revenue· FY2025

fxinput

D17

Line item

BFY2023Actual

CFY2024Actual

DFY2025Proj

EFY2026Proj

FFY2027Proj

GFY2028Proj

HFY2029Proj

Assumptions and Drivers

2Revenue growth

14.0%

3COGS % of sales (excluding D&A)

61.0%

4SG&A % of sales

14.0%

5Depreciation % of beginning PP&E

12.0%

6Tax rate

24.0%

7DSO (days)

8Days inventory on hand

9DPO (days)

10Other current assets % of revenue

3.0%

11Accrued liabilities % of revenue

4.0%

12Deferred revenue % of revenue

2.0%

13Capex % of revenue

7.0%

14Interest rate

5.5%

15Dividend payout %

30.0%

Income Statement

17Revenue

28,000

31,920

18Revenue Growth

14.0%

19COGS (excluding D&A)

16,992

19,522

20Gross Profit

11,008

12,398

21Gross Margin

39.3%

38.8%

22SG&A

3,920

4,469

23EBITDA

7,088

7,929

24Depreciation

1,488

1,545

1,627

25Operating Income / EBIT

5,600

6,384

26Interest Expense

495

27Pre-Tax Income

5,105

5,889

28Taxes

1,225

1,413

29Net Income

3,880

4,476

Balance Sheet

31Cash

6,003

7,942

32Accounts Receivable

2,915

3,323

33Inventory

3,949

4,502

34Other Current Assets

840

958

35Total Current Assets

13,707

16,725

36PP&E

12,872

13,561

37Total Assets

26,579

30,286

38Accounts Payable

2,430

2,770

39Accrued Liabilities

1,120

1,277

40Deferred Revenue

560

638

41Total Current Liabilities

4,110

4,685

42Debt

9,000

43Total Liabilities

13,110

13,685

44Contributed Capital

5,500

45Retained Earnings

7,969

11,101

46Total Stockholders' Equity

13,469

16,601

47Total Liabilities & Equity

26,579

30,286

48Balance Check

Cash Flow Statement

50Net Income

3,880

4,476

51Depreciation

1,488

1,545

1,627

52Change in Accounts Receivable

(358)

(408)

53Change in Inventory

(485)

(553)

54Change in Other Current Assets

(103)

(118)

55Change in Accounts Payable

298

340

56Change in Accrued Liabilities

138

157

57Change in Deferred Revenue

58Cash Flow From Operations

4,927

5,517

59Capital Expenditures

(1,960)

(2,234)

60Cash Flow From Investing

(1,960)

(2,234)

61Debt Issuance / Repayment

–

62Dividends

(1,164)

(1,343)

63Cash Flow From Financing

(1,164)

(1,343)

64Net Change in Cash

1,803

1,940

65Beginning Cash

4,200

6,003

7,942

66Ending Cash

6,003

7,942

Supporting Schedules

PP&E Schedule

69Beginning PP&E

12,400

12,872

13,561

70(+) Capital Expenditures

1,960

2,234

71(–) Depreciation

(1,488)

(1,545)

(1,627)

72Ending PP&E

12,872

13,561

Retained Earnings Schedule

74Beginning Retained Earnings

5,253

7,969

11,101

75(+) Net Income

3,880

4,476

76(–) Dividends

(1,164)

(1,343)

77Ending Retained Earnings

7,969

11,101

Vesper Whisper

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Case facts — supplied

Revenue growth: 14.0%
COGS % of sales (excluding D&A): 61%
SG&A % of sales: 14.0%
Depreciation % of beginning PP&E: 12%
Tax rate: 24%
DSO: 38 days
Days inventory on hand: 82 days
DPO: 51 days
Other current assets % of revenue: 3%
Accrued liabilities % of revenue: 4%
Deferred revenue % of revenue: 2%
Capex % of revenue: 7.0%
Interest rate: 5.5%
Dividend payout %: 30%

Objective

Test: build the spine unaided — FY2025

Corvale Instruments, a company you have not modelled before, with its own historicals and drivers. No hints and no coaching: build the spine and prove the balance check on your own. Build FY2025 first: Revenue is prior-year revenue multiplied by one plus the growth rate; Net Income is pre-tax income less taxes; AR is revenue divided by 365, multiplied by the DSO driver; CFO is the sum of net income, add-backs and every working-capital change; Ending Cash is beginning cash plus the net change in cash; Balance Check is total assets less total liabilities and equity, which must be zero.

Target cellD17

Think first

—What drives Revenue?
—What drives Net Income?
—What drives AR?
—What drives CFO?
—What drives Ending Cash?
—What drives Balance Check?