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    GYM Financial Modeling

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    Divyanshu Sharma
    - The document presents financial projections for a gym business over a 10 year period, including income statements, balance sheets, and cash flow statements. - Key assumptions include maintenance costs of 4%, debt of 70% of capital at 8% interest for 10 years, and equity of 30% with a cost of equity of 17%. - The scenario shows an NPV of $28,254,548 and IRR of 65.28%, indicating a highly profitable investment opportunity for the gym.

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    GYM Financial Modeling

    Uploaded by

    Divyanshu Sharma
    117 views12 pages
    - The document presents financial projections for a gym business over a 10 year period, including income statements, balance sheets, and cash flow statements. - Key assumptions include maintenance costs of 4%, debt of 70% of capital at 8% interest for 10 years, and equity of 30% with a cost of equity of 17%. - The scenario shows an NPV of $28,254,548 and IRR of 65.28%, indicating a highly profitable investment opportunity for the gym.

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    Financial Modelling Report

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    - The document presents financial projections for a gym business over a 10 year period, including income statements, balance sheets, and cash flow statements. - Key assumptions include maintenance costs of 4%, debt of 70% of capital at 8% interest for 10 years, and equity of 30% with a cost of equity of 17%. - The scenario shows an NPV of $28,254,548 and IRR of 65.28%, indicating a highly profitable investment opportunity for the gym.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    117 views12 pages

    GYM Financial Modeling

    Uploaded by

    Divyanshu Sharma
    - The document presents financial projections for a gym business over a 10 year period, including income statements, balance sheets, and cash flow statements. - Key assumptions include maintenance costs of 4%, debt of 70% of capital at 8% interest for 10 years, and equity of 30% with a cost of equity of 17%. - The scenario shows an NPV of $28,254,548 and IRR of 65.28%, indicating a highly profitable investment opportunity for the gym.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 12

    Scenario Summary

    Current Values: Scenario


    Changing Cells:
    Maintenance 3% 4%
    Equity 20% 17%
    Rent_Charges 300,000 250,000
    Premium_Tarif 4000 5000
    Tarif 1000.00 1500.00
    Result Cells:
    NPV $3,402,619 $28,254,548
    IRR 27.00% 65.28%
    Notes: Current Values column represents values of changing cells at
    time Scenario Summary Report was created. Changing cells for each
    scenario are highlighted in gray.
    Financial Modeling: Case - Gym Service

    Assumptions - Gym Assumptions - Financing

    Cost of Gym 30,000,000 Debt


    Maintenance / year 4% Equity
    Interest on Debt
    Life of gym (years) 10 Tenure of loan (years)
    Deprecation Rate 8% SLM Cost of Equity
    Scrape value 6,000,000.00 Tax
    Assumptions - Operating Revenues Assumptions - Operating Costs
    Number of personal trainers
    Strenght of general customer 700.00 Number of Trainers
    Strength of premium customer 50.00 Salary of trainers(Per Trainerpe
    NO.OF MONTHS 12 Personal Trainer per month
    Tariff (Rs./fee)PER MONTH(Premium) 5000
    Tariff (Rs./fee)PER MONTH 1500.00 Rent & Lightning(per month)
    Escalation Rate - Tariff 10% Escalation Rate - Tariff

    Income Statement
    Year - 0 Year - 1 Year - 2
    Flag 0 1 2
    Revenue 15,600,000 17,160,000
    Other Income
    Maintenance Expenses 624,000 686,400
    Trainer Costs 2,640,000 2,904,000
    Rent and electricity 3,000,000 3,300,000
    Cost of Revenues 6,264,000 6,890,400

    Gross Pofit / (EBITDA) 9,336,000 10,269,600

    Depreciation 2,400,000 2,400,000


    Interest Expense - 1,448,176
    Profit Before Tax 6,936,000 6,421,424

    Income Taxes 2,080,800 1,926,427


    Profit After Tax 4,855,200 4,494,997

    Balance Sheet
    Year - 0 Year - 1 Year - 2
    Assets
    Cash
    PPE, Net 30,000,000 27,600,000 25,200,000
    Total Assets 30,000,000 27,600,000 25,200,000
    Liabilities
    Debt 21,000,000 18,102,204 16,652,585
    Equity 9,000,000 9,000,000 9,000,000
    Retained Profit 4,855,200 (360,203)
    Total Liabilities 30,000,000 31,957,404 25,292,382
    Checksum

    Cash Flow Statement


    Year - 0 Year - 1 Year - 2

    Net Income (PAT) - 4,855,200 4,494,997


    Depreciation - 2,400,000 2,400,000
    Interest paid - - 1,448,176
    Cash Flow From Operations - 7,255,200 8,343,173

    Capex (30,000,000) - -
    Cash Flow from Investing (30,000,000) - -

    Debt (Repayment)/Issuance 21,000,000 (2,897,796) (1,449,619)


    Interest paid - - (1,448,176)
    Equity Addition 9,000,000 - -
    Cash Flow from Financing 30,000,000 (2,897,796) (2,897,796)

    Net change in Cash - 4,357,404 5,445,377

    Cash - BOP - - 4,357,404


    Cash - EOP - 4,357,404 9,802,782
    Checksum

    Free Cash Flow - Equity


    Year - 0 Year - 1 Year - 2

    Net Income - 4,855,200 4,494,997


    + Depreciation - 2,400,000 2,400,000
    - Capital Expenses (30,000,000) - -
    - Debt Repayment/+ raised 21,000,000 (2,897,796) (1,449,619)
    Cash Flow to Equity (9,000,000) 4,357,404 5,445,377

    Returns Analysis - Equity


    Year - 0 Year - 1 Year - 2

    FCFE (9,000,000) 4,357,404 5,445,377

    Cost of Equity 17.0%


    NPV $28,254,548
    IRR 65.28%
    Assumptions - Financing

    70% 21,000,000
    30% 9,000,000
    rest on Debt 8%
    ure of loan (years) 10
    17%
    30.00%
    Assumptions - Operating Costs
    mber of personal trainers 2
    mber of Trainers 5
    ry of trainers(Per Trainerpe 30,000
    sonal Trainer per month 35000

    t & Lightning(per month) 250,000


    alation Rate - Tariff 10%

    Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8


    3 4 5 6 7 8
    18,876,000 20,763,600 22,839,960 25,123,956 27,636,352 30,399,987

    755,040 830,544 913,598 1,004,958 1,105,454 1,215,999


    3,194,400 3,513,840 3,865,224 4,251,746 4,676,921 5,144,613
    3,300,000 3,300,000 3,300,000 3,300,000 3,300,000 3,300,000
    7,249,440 7,644,384 8,078,822 8,556,705 9,082,375 9,660,613

    11,626,560 13,119,216 14,761,138 16,567,251 18,553,976 20,739,374

    2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000


    1,332,207 1,206,960 1,071,693 925,605 767,829 597,432
    7,894,353 9,512,256 11,289,445 13,241,647 15,386,147 17,741,942

    2,368,306 2,853,677 3,386,833 3,972,494 4,615,844 5,322,583


    5,526,047 6,658,579 7,902,611 9,269,153 10,770,303 12,419,359

    Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8

    22,800,000 20,400,000 18,000,000 15,600,000 13,200,000 10,800,000


    22,800,000 20,400,000 18,000,000 15,600,000 13,200,000 10,800,000
    15,086,996 13,396,160 11,570,058 9,597,867 7,467,900 5,167,537
    9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000
    5,886,251 772,329 7,130,283 2,138,870 8,631,433 3,787,927
    29,973,247 23,168,489 27,700,340 20,736,737 25,099,333 17,955,463

    Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8

    5,526,047 6,658,579 7,902,611 9,269,153 10,770,303 12,419,359


    2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000
    1,332,207 1,206,960 1,071,693 925,605 767,829 597,432
    9,258,254 10,265,539 11,374,304 12,594,757 13,938,132 15,416,792

    - - - - - -
    - - - - - -

    (1,565,589) (1,690,836) (1,826,103) (1,972,191) (2,129,966) (2,300,364)


    (1,332,207) (1,206,960) (1,071,693) (925,605) (767,829) (597,432)
    - - - - - -
    (2,897,796) (2,897,796) (2,897,796) (2,897,796) (2,897,796) (2,897,796)

    6,360,458 7,367,743 8,476,509 9,696,962 11,040,337 12,518,996

    9,802,782 16,163,240 23,530,984 32,007,492 41,704,454 52,744,791


    16,163,240 23,530,984 32,007,492 41,704,454 52,744,791 65,263,787

    Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8

    5,526,047 6,658,579 7,902,611 9,269,153 10,770,303 12,419,359


    2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000
    - - - - - -
    (1,565,589) (1,690,836) (1,826,103) (1,972,191) (2,129,966) (2,300,364)
    6,360,458 7,367,743 8,476,509 9,696,962 11,040,337 12,518,996

    Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8

    6,360,458 7,367,743 8,476,509 9,696,962 11,040,337 12,518,996


    Year - 9 Year - 10
    9 10
    33,439,985 36,783,984

    1,337,599 1,471,359
    5,659,074 6,224,982
    3,300,000 3,300,000
    10,296,674 10,996,341

    23,143,312 25,787,643

    2,400,000 2,400,000
    413,403 214,652
    20,329,909 23,172,991

    6,098,973 6,951,897
    14,230,936 16,221,094

    Year - 9 Year - 10

    8,400,000 6,000,000
    8,400,000 6,000,000
    2,683,144 -
    9,000,000 9,000,000
    10,443,009 5,778,084
    22,126,154 14,778,084

    Year - 9 Year - 10

    14,230,936 16,221,094
    2,400,000 2,400,000
    413,403 214,652
    17,044,339 18,835,745

    - -
    - -

    (2,484,393) (2,683,144)
    (413,403) (214,652)
    - -
    (2,897,796) (2,897,796)

    14,146,543 15,937,950

    65,263,787 79,410,330
    79,410,330 95,348,280

    Year - 9 Year - 10

    14,230,936 16,221,094
    2,400,000 2,400,000
    - -
    Interest Rate (%)

    (2,484,393) (2,683,144)
    14,146,543 15,937,950

    Year - 9 Year - 10

    14,146,543 15,937,950
    Financing Debt (%) - For Neutral Case
    65% 10% 15% 20% 25% 30%
    8% 65.3% 65.3% 65.3% 65.3% 65.3%
    9% 65.3% 65.3% 65.3% 65.3% 65.3%
    10% 65.3% 65.3% 65.3% 65.3% 65.3%
    11% 65.3% 65.3% 65.3% 65.3% 65.3%
    12% 65.3% 65.3% 65.3% 65.3% 65.3%
    13% 65.3% 65.3% 65.3% 65.3% 65.3%
    Cost of gym 30000000
    Debt 70%
    Amount of loan 21000000
    Rate of interest 8%
    Tenure of Loan 10

    Year 0 1 2 3 4 5 6 7 8
    BOP - Loan 21000000 18102204 16652585 15086996 13396160 11570058 9597867 7467900
    Interest 0 1448176 1332207 1206960 1071693 925605 767829 597432
    Principal Repaid 2897796 1449619 1565589 1690836 1826103 1972191 2129966 2300364
    EAI 2897796 2897796 2897796 2897796 2897796 2897796 2897796 2897796
    EOP- Loan 21000000 18102204 16652585 15086996 13396160 11570058 9597867 7467900 5167537
    9 10
    5167537 2683144
    413403 214652
    2484393 2683144
    2897796 2897796
    2683144 0

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