Though we cannot start a forecast of the balance sheets if we don't do a forecast
of the P&L because most of the items in the balance sheet actually depend
On sales which is in the P&L.
That's why we started with the forecast of the P&L.
And we went directly with an example of Polypana which is
if I'm able to forecast sales, I'm basically done
with the forecast of the P&L because almost everything depends on sales.
You'll remember with a Polypana we thought, for the next three years We agree
that reasonable growth would be 25% per year which is what we agreed.
Remember we have to be skeptical, and then we could do a sensitivity analysis to see
whether our simulation actually changes with the different growth rate.
For the other items in the P&L when we said,
okay let's take for example Gross Margin.
It was 70% over every year in the last four years, then let's keep 70% for
the next three years.
And then Opex, it was not the same for the last four years.
It's been becoming lower and lower, right?
It's been from 29% to 24.
21, 19, right now, what we said is that we
will reaching that point of efficiency in which we're going to keeping 19.
Now, once we did the forecast to the panel and we have all the panel forecasted,
then we moved to the analysis of the balance sheet.
And do a forecast on the balance sheet, and I showed you a little
a very simple example not with Poly Pile in this case a very simple example
would you forecast a very simple balance sheet with eight items.
First things we forecast things that are related to sales, receivables,
inventory and payables.