The Financial Plan already reflects the accumulated treasury balances, and presents positive balances in all the years of the period under analysis. After the start of the project, we can consider that it is self-sufficient in terms of generating resources that allow its financial sustainability.
The balances of the financial plan are reflected in the forward balance sheet, either on the Asset side, as positive if any, or on the Liabilities side, for other creditors if negative.
In the following chart we can see the evolution of the annual cash balances, and it can be seen that they are positive in all the years of the project, assuming an increasing tendency, constituting an important guarantee for the investors with respect to the capacity of generating means for the fulfillment of the responsibilities of the
(97% of Total Assets in Year 0), which deteriorates marginally in year 1 (96%) but tends to stabilize in the following years of the projection period (96% of the Assets) , a symptom of the economic and financial health of the project, and the good capacity to generate funds, revealing a high independence of the company 's creditors.
Economic - Financial
In this area, we have prepared several ratios that mirror the behavior of exploitation in the early years:
• Sales reflect significant annual growth in the first few years, on the one hand due to the change in the utilization rate of productive capacity, and on the other hand, due to the effect of inflation;
• The net profitability of sales varies between 11% in Year 2 (2020) and 16% in
Year 10, which can be considered a relevant profitability, vis-à-vis the sector
in which the business is inserted;
• The profitability of the Asset is satisfactory, assuming an average annual rate of about 12.2% over the projection period to a certain extent, owing to the high investment base;
• The average annual return on Shareholders' Equity, during the project period (Year
1 - Year 10), taking into account the high base of Shareholders' Equity, reaches an average rate of 12.9% per annum;
• The financial autonomy obtained for the project period reaches quite high levels, due to the relevance of annual operating results;
Considering the assumptions considered and the economic and financial indicators obtained, it is worth highlighting the good economic and financial performance of the project:
Overall liquidity, as of year 1, shows an above-normal level (greater than 2), largely due to the project's ability to release resources, in addition to the fact that alternative liquidity surpluses.
Reduced liquidity also achieves high comfort levels, and
Taking into account the assumptions previously presented, the project presents Gross Income above the Critical Point of sales, starting with Year 1 of the project, denoting a positive safety margin of 85%, which rises from Year 2 to 153% and higher levels in the following years, for greater project safety.
Particular emphasis is placed on the high positive value of Cash Flows (USD), starting with Year 1 of the project activity, revealing a good ability to self - finance the activity. The GVA reaches very comfortable values, constituting an excellent indicator of the contribution of the project to the formation of the national wealth.