Additional balance sheet data can be entered here (e.g., current asset, shares outstanding, common equity, total debt, etc.), as seen in Figure 3.2, and the relevant financial ratios will be computed (EBIT, Net Income, Net Cash Flow, Operating Cash Flow, Economic Value Added, Return on Invested Capital, Net Profit Margin, etc.). Computed results or intermediate calculations are shown as data grids. Data grid rows are color coded by alternate rows for easy viewing. As usual, you can click on Copy Grid to copy the computations to the Windows clipboard from which you can then paste into another software such as Microsoft Excel. Here are some tips on using the Cash Flow Ratios tab:

  • Enter the input assumptions as best you can; you can guess at some of these figures to get started. The inputs entered in this Cash Flow Ratios subtab will be used only in this subtab’s balance sheet ratios.
  • There are two sets of results available. The first and larger results grid shows the time series of cash flow analysis for the Project for multiple years. These are the cash flows used to compute the NPV, IRR, MIRR, and so forth.
  • The smaller grid at the bottom of the screen returns the balance sheet ratios, which apply the input parameters at the top of the tab. These are single-point estimates and represent a snapshot in time for either the firm or the project’s balance sheet.
  • The first project requires you to enter the eleven balance sheet input assumptions, whereas all other projects’ balance sheet inputs either can be linked to the first project or uniquely entered (if these are projects under a different balance sheet scenario such as international projects or a different year). Use the Link Input Assumptions from Project 1 or Use Custom Input Assumptions droplist to select the relevant settings you need.
  • You can show the results as cash flow values and ratios or as a percentage of sales revenue (use the Show Earnings and Cash Flow Values droplist to make your selection).



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