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Manufacturing and machinery

Heavy equipment manufacturer financial model, built free.

A three-statement Excel model for a heavy equipment, truck and farm machinery manufacturer, built from your own figures and checked to balance.

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  • 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

Builds construction and mining machinery, trucks and buses, and tractors and harvesters sold through dealers, with dealer inventory swings, parts and service, and a captive finance arm funding dealers and end customers.

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 three ways

    Discounted cash flow, trading multiples and sum of the parts, 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: its structure and its inputs, ready for your own figures.

Annual · 10 years · Low detail
Heavy equipment manufacturer sample model.xlsx
The How It Works sheet of the sample heavy equipment manufacturer model

The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.

How it works

How the model works for a heavy equipment manufacturer.

  1. How it earns revenue3 formulas
    Loan yield and interest income · All loan portfolios
    Interest incomeAverage gross loansPortfolio yield (base rate + margin)share of the year
    Pricing and pass-through · All product lines
    Product sales revenueFactory shipments (wholesale units)from sales volumes by productAverage selling price
    Pricing and pass-through · All product lines
    Average selling priceAverage selling price at the start datePrice index
  2. What drives its costs3 formulas
    Expected credit loss and write-offs · All loan portfolios
    Closing allowanceClosing gross loansfrom loan origination and runoffECL allowance coverage (% of gross loans)
    Expected credit loss and write-offs · All loan portfolios
    Credit loss expense (net write-offs + change in allowance)Write-offs (net of recoveries)Closing allowanceOpening allowance
    Expected credit loss and write-offs · All loan portfolios
    Write-offs (net of recoveries)Gross write-offsRecoveries
  3. What it invests in3 formulas
    Plant capex and depreciation · All plants
    Plant capital expenditureSustaining capexGrowth capex
    Plant capex and depreciation · All plants
    Plant depreciationDepreciation of existing assetsDepreciation of sustaining additionsProject 1 depreciation (from commissioning)from from commissioningProject 2 depreciation (from commissioning)from from commissioningProject 3 depreciation (from commissioning)from from commissioning
    Plant capex and depreciation · All plants
    Closing net book valueOpening net book valuePlant capital expenditurePlant depreciation
  4. How it is funded3 formulas
    Loan origination and runoff · All loan portfolios
    Closing gross loansOpening gross loansNew lending (settlements)Scheduled amortisationPrepayments and other runoff (including loans written off)
    Loan origination and runoff · All loan portfolios
    Net loans advanced (new lending less cash repayments)Closing gross loansOpening gross loansWrite-offs (net of recoveries)from expected credit loss and write-offs
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
  5. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

36 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 forecastConsensus curve with long-run anchor
  • Exchange rate (US dollar)Exchange rate by financial year
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • Corporate fixed assetsStraight-line over remaining life
  • DebtAmortising term loan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Interest-rate hedgingHedged share at a fixed rate
  • LeasesLease register
  • Warehouse and securitisation fundingWarehouse advance rates
  • InventoryWeighted average costRaw materials, work-in-progress and finished goods held to support production and sales (used in place of the inventory part of working capital), and the cost-of-sales effect of the costing method and stock provisions.
  • Warranty provisionsWarranty as % of revenueThe cost of repairing or replacing faulty products sold, and the provision held for future claims.
  • Research, development and engineeringR&D intensityResearch, product development and sustaining engineering spend, the share capitalised as development costs and its amortisation, customer-funded engineering, and R&D tax incentives.
  • Aftermarket services and service contractsInstalled base × attach rate × contract valueService, maintenance, repair and consumables revenue earned from the installed base of equipment the business has sold, and the cost of delivering it.
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Discount rate (WACC)CAPM at target gearing
  • Terminal valuePerpetuity growth on normalised cash flow
  • Sum of the partsRegister of parts on mixed bases
  • Interest-rate forecastMarket forward curve
  • Enterprise value to equity bridgeNet debt at the valuation date
  • Loan origination and runoffOriginations less runoff
  • Loan yield and interest incomeBase rate plus margin
  • Expected credit loss and write-offsAllowance coverage and write-off rate
  • Capacity and productionOperating days × daily rateHow much a plant can make and how much it does make, from capacity, operating time, utilisation and yield.
  • Direct labourFixed plus variable labourWages and on-costs of the production workforce at each plant.
  • MaintenanceFixed plus cost per unitRoutine maintenance and periodic shutdowns needed to keep plant running.
  • Plant fixed overheadsStep-fixed with shifts and linesSite costs that do not vary with output: site management and supervision, quality, site services, insurance, rates and other production overheads of each plant.
  • Plant capex and depreciationSustaining capex plus growth projectsSustaining and expansion capital expenditure on plant, and the depreciation and book value that follow.
  • Energy and carbonEnergy intensity × priceElectricity, gas and fuel used by a plant, and the cost of the carbon it emits.
  • Sales volumes by productRetail demand plus dealer restockingUnits sold of each product line.
  • Pricing and pass-throughPrice with annual increasesSelling price of each product line and the revenue it earns (units × price).
  • Bill of materials and input costsStandard cost per unitRaw materials, components and bought-in parts consumed by each product line.
Key numbers

The numbers it tracks.

  1. 01retail sales
  2. 02factory shipments
  3. 03dealer inventory (weeks)
  4. 04price realisation
  5. 05parts and service share
  6. 06equipment operations margin
  7. 07financial services return on equity
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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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.