Operating Model Critique
Hi, would anyone be willing to take a quick look at a 3-statement operating model I made for ServiceNow, Inc?
It's the first forecast I've ever made so any help would be greatly appreciated! I have my first interview with a boutique in a couple weeks.
post it lets take a look
Here's a link: XXXXXXX
Thank you for willing to take a look!
COGS rationalisation seems a little aggressive, more than 10 pp in five years. Usually for longer term forecasts, it might be prudent to be a little more pessimistic in factoring in margin growth.
If your EBT is negative, it makes sense that you shouldn't be taxed anything at all.
Capex usually bottoms out at depreciation levels, just to make sure the fixed asset base is enough to sustain the business.
Non-current assets and liabilities typically don't grow with revenue; like the name suggests, the values don't change year on year unless you're amortising or adding on extraordinarily each year.
No point adding a PIK/Cash ratio if you're not going to tie anything to it. Your model doesn't change if I revise 100% cash interest to 50-50.
Your revolver calculations should take into account your OCI figure, since the latter flows into cash.
Got these from a quick look through. Will go into detail later if I have the time!
I made some changes, could somebody take a quick glance at it? I'm struggling with how to forecast debt, amortization (after 5 years), and dilutive share count.
XXXXXX
Anyone?
Can you send it over? Cant get the link to go through.
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