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Defence technology company financial model, built free.

A three-statement Excel model for a defence technology products (counter-drone, sensors, electronic warfare), built from your own figures and checked to balance.

  • Free account
  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Designs and sells counter-drone, sensing and electronic-warfare products to militaries, government agencies and critical-infrastructure owners, won from a disclosed sales pipeline into a contracted backlog, with software subscriptions on the software-enabled units in the field, high R&D and employee share schemes (DroneShield).

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and trading multiples, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
Defence technology company sample model.xlsx
The Summary sheet of the sample defence technology company model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for a defence technology company.

  1. How it earns revenue3 formulas
    Hardware sales by product family · The business
    Hardware salesFamily 1 salesFamily 2 salesFamily 3 sales
    Hardware sales by product family · The business
    Hardware cost of goods soldFamily 1 cost of goodsFamily 2 cost of goodsFamily 3 cost of goods
    Hardware sales by product family · The business
    Hardware units shippedFamily 1 units shippedFamily 2 units shippedFamily 3 units shipped
  2. What drives its costs3 formulas
    Operating expenses · The business
    Total FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
    Operating expenses · The business
    Total average FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
    Operating expenses · The business
    Total staff costsSalariesOn-costsOther costs per FTE
  3. What it invests in3 formulas
    Corporate fixed assets
    Capital expenditureRevenuefrom statementsCapex as % of revenueAdditional planned capex
    Corporate fixed assets
    DepreciationDepreciation of the opening asset baseDepreciation of new capex
    Corporate fixed assets
    Closing net book valueOpening net book valueCapital expenditureDepreciation
  4. How it is funded1 parts
    Cash and deposits
  5. How profit becomes cash3 formulas
    Sales pipeline · The business
    Customer deposits on ordersClosing backlogCustomer deposits (% of the closing backlog)
    Sales pipeline · The business
    Closing backlogOpening backlogAdd orders wonLess hardware delivered
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
What it covers

18 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastCPI glide path
  • Operating expensesHeadcount build by function
  • Working capitalDays-based working capital
  • Income taxTax losses: caps, expiry, deferred tax asset and carry-back
  • Corporate fixed assetsStraight-line over remaining life
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / revenue multiple
  • Cash and depositsInterest on cash balances
  • Sales pipelinePipeline conversion into backlog and deliveriesThe sales funnel of a defence technology supplier: pipeline, orders won, contracted backlog, hardware delivered and customer deposits.
  • Hardware sales by product familyProduct family mix, prices and marginsHardware delivered split by product family, with average selling prices (units shipped), gross margins and software-enabled units.
  • Software subscriptions and servicesSubscriptions on the software-enabled units in the fieldSubscriptions on the software-enabled units in the field, warranty and services, their delivery cost and subscriptions billed in advance.
  • LeasesLease liability and right-of-use asset
  • Key-metric summaryStandard growth, margin and leverage metrics
  • Market data and capitalisationShare price and securities on issue
  • Per-share earnings and market multiplesPer-share earnings and multiples at the current price
  • Discount rate (WACC)CAPM at target gearing
  • Share-based paymentsEquity-settled options and performance rights
  • Intangible assets and softwareCapitalised software and platform spend
Key numbers

The numbers it tracks.

  1. 01sales pipeline
  2. 02orders and book-to-bill
  3. 03contracted backlog
  4. 04hardware sales by product family
  5. 05software-enabled units in the field
  6. 06recurring revenue
  7. 07gross margin
  8. 08underlying EBITDA
  9. 09cash runway
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.