Marginal Cash Flow Tool Kit

Description

The Marginal Cash Flow tool kit provides you with templates and calculators to help you determine if your business or a business investment is driving positive cash flow for your company.  It allows you to do “what if’ scenarios to understand how the business would need to operate or what the investment parameters would need to be in order to drive positive cash flow.  The tool kit also provides a model for the sustainable growth rate of your business to help you understand how fast you can grow without having to put in more capital into the business.

• Marginal Cash Flow Template: This template provides a method to determine if your business is generating positive cash flow as your business grows.
• Marginal Cash Flow Investment Template: This template provides a way to calculate if a specific investment that you are doing is generating positive incremental cash flow.
• Sustainable Growth Rate Template: This template provides guidance on calculating your company’s sustainable growth rate, in other words, your company’s “speed limit” based on its profitability and capital structure.  Growing much faster than this metric would possibly require additional capital to be added to the business to fuel the growth.