Capital Plan Worksheet Template
The CFO should conduct financial analysis on the items listed in the Capital Plan Worksheet Template in order to determine changes required to the capital structure. The worksheet should be completed with the appropriate information:
- Enter the values from the last five years to form a baseline;
- Calculate the averages for the last five years along with the associated ratios; and
- Develop various projections based on assumptions for debt, equity, assets, cash, taxes, etc.
The CFO should explore alternate capital scenarios using consistent and appropriate financial analysis methods and note such methods on RC1010-2 CAPITAL PLAN WORKSHEET. Analysis methods may include:
- Debt-to-Equity: Effectiveness of shareholders capital.
- Equity Growth: Represents the sustainable growth rate of the organization given the current capital structure. The organization must maintain Equity Growth > Revenue Growth or obtain outside funding at increasing risk.
- EBITDA: Operating cash flow of the organization.
- ROIC: Effectiveness of cash used in the organization.
- ROA: Effectiveness of the assets purchased.
- ROE: Effectiveness of the shareholders ownership.
- Revenue Growth: Effectiveness of the strategy.
- Profit Margin: Effectiveness of the business model.
- WACC: Effectiveness of financing activities.