Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

More documents

Recommendations

Info

Railway Reform: Toolkit for Improving Rail Sector Performance Annex 1: Financial Model—Guidance for Users Note: For integrated entities, equity assumptions need to be entered for freight only if it is combined with passenger or infrastructure. If infrastructure is integrated with passenger, users enter shared equity assumptions for the infrastructure entity only. 4 Calculations On this worksheet, assumptions are converted through calculations into a form required for financial statements and numerical and graphical results. Users need not enter assumptions or data because the model will automatically feed any required inputs from the Assumptions sheet or Scenario analysis, if enabled. The Calculations sheet can be used to check calculation methodology or to assist an experienced financial modeler in troubleshooting and model calibration. 5 Financial Statements Balance sheet As users are entering assumptions, the model is generating financial statements, including a balance sheet, for each selected entity. For financial statements that are complete and accurate, all assumptions must be entered. Users must pay particular attention to initial historical data because they must balance assets with liabilities and equity in the first modeling year; then the model will balance following years through income and cash flow statements. The consolidated balance sheet combines individual balance sheets of selected entities and removes intracompany transactions, such as the impact of internal track access charges on receivables and payables. Note: The Ratios worksheet contains checks to ensure that the balance sheet is correctly presented. Always confirm that the answer to each check is ‘Yes’. Income statement Assumptions entered for traffic, tariffs, subsidies and track access charges define income statement revenues for the selected entities. Subsidy amortization is non cash revenue and included in other revenue. The main costs comprise operating costs and track access charges for freight and passenger. Depreciation, a non cash operating cost, is presented separately from cash-based operating costs to distinguish between earnings before interest, tax, depreciation and amortization (EBITDA) and earnings before interest and tax (EBIT). Net finance expenses are the balance between debt service and interest income. Net income is the final result after income tax and net finance expenses have been deducted. Note: An infrastructure entity derives most revenues from track access charges, paid by freight and passenger entities and recorded by them as operating expenses. However, in consolidation, these track access charges are considered ‘internal transfers’ and are removed for selected entities. Only track access revenue derived from external clients and the unselected freight or passenger entity is shown on the consolidated income statement. The World Bank Page 218
Railway Reform: Toolkit for Improving Rail Sector Performance Annex 1: Financial Model—Guidance for Users Cash flow statement The indirect method is used to construct cash flow statements; first, net income is adjusted for non cash revenues and costs to determine net cash from operating activities. Investing activities present the combined capital expenditure and sale of assets across all asset categories. Financing activities detail changes in debt and equity balances and amount of interest paid. Dividend calculation is based on user assumptions and cash flow available for dividends. 6 Input and Output Summaries Charts On this worksheet, key operational and financial results are presented as dynamic charts that automatically adjust for changes in the forecast period, currency, or input units. Productivity charts include user-defined benchmarks on the ‘Assumptions’ worksheets. Users are encouraged to study the charts to visually validate assumptions and modeling results, and make it easier to detect inadvertent omissions or errors. Results This includes summaries of assumptions and outputs and a list of key operating and financial ratios. The input summary changes in response to changed assumptions or to enabling the ‘scenario analysis’ function. Users cannot enter inputs on this sheet or adjust assumptions because the summary feeds from the ‘Assumptions’, ‘Calculation’ and ‘Charts’ sheets. The output summary contains key financial and operational results with charts adapted from ‘Charts’ sheet. Results are expressed as numbers and charts, and will change if assumptions are changed or if ‘scenario analysis’ is enabled. The output summary is intended to present a results snapshot under assumptions selected. Finally, some common financial ratios are presented under ‘Results’ with minimum, maximum, and average values and their dates of occurrence. Similar to other results sheets, these ratios change if assumptions are changed or if scenario analysis is enabled. This worksheet includes checks to validate the balance sheet and cash balances. Note: Users cannot introduce changes directly to results or charts in the above worksheets, only to the assumptions or scenario analysis sheets. 7 Scenario and Sensitivity Testing This worksheet can be used after all assumptions have been entered and the financial statements and results have been validated to form a solid base case. The user can use the Scenario analysis sheet for sensitivity testing of key variables and model calibration. Each railway entity has a scenario analysis that has to be switched on when performing sensitivity testing. After an entity scenario analysis has been switched on, the variable to be tested must also be switched on; the value entered for the variable will supersede the value entered on the Assumptions sheet and feed into all results and charts, in- The World Bank Page 219
Page 1 and 2:
Railway Reform: Toolkit for Improvi
Page 3 and 4:
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
1 Railway Reform: Toolkit for Impro
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
10 Railway Reform: Toolkit for Impr
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186: Railway Reform: Toolkit for Improvi
Page 187 and 188: 11 Railway Reform: Toolkit for Impr
Page 235: Railway Reform: Toolkit for Improvi
Page 287 and 288:
Page 289 and 290:
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
Page 297 and 298:
Page 299 and 300:
Page 301 and 302:
Page 303 and 304:
Page 305 and 306:
Page 307 and 308:
Page 309 and 310:
Page 311 and 312:
Page 313 and 314:
Page 315 and 316:
Page 317 and 318:
Page 319 and 320:
Page 321 and 322:
Page 323 and 324:
Page 325 and 326:
Page 327 and 328:
Page 329 and 330:
Page 331 and 332:
Page 333 and 334:
Page 335 and 336:
Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
Page 345 and 346:
Page 347 and 348:
Page 349 and 350:
Page 351 and 352:
Page 353 and 354:
Page 355 and 356:
Page 357 and 358:
Page 359 and 360:
Page 361 and 362:
Page 363 and 364:
Page 365 and 366:
Page 367 and 368:
Page 369 and 370:
Page 371 and 372:
Page 373 and 374:
Page 375 and 376:
Page 377 and 378:
Page 379 and 380:
Page 381 and 382:
Page 383 and 384:
Page 385 and 386:
Page 387 and 388:
Page 389 and 390:
Page 391 and 392:
Page 393 and 394:
Page 395 and 396:
Page 397 and 398:
Page 399 and 400:
Page 401 and 402:
Page 403 and 404:
Page 405 and 406:
Page 407 and 408:
Page 409 and 410:
Railway Reform: Toolkit for improvi
Page 411 and 412:
Page 413 and 414:
Page 415 and 416:
Page 417 and 418:
Page 419 and 420:
Page 421 and 422:
Page 423 and 424:
Page 425 and 426:
Page 427 and 428:
show all

Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

Create successful ePaper yourself

Delete template?

Save as template?