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SENSITIVITY ANALYSIS
Tornado Analysis & Key Risk Driver Impact Assessment
                 
TORNADO ANALYSIS — IMPACT ON NET INCOME
Risk Driver Base Value Low Case High Case NI at Low NI at High Swing ($) Tornado Bar Rank
Revenue Growth Rate 8.0% -2.0% 18.0% $4,177,500 $7,552,500 $3,375,000 |||||||||||||||||||||||||||| 2
COGS % of Revenue 55.0% 61.0% 49.0% $3,435,000 $8,295,000 $4,860,000 |||||||||||||||||||||||||||||||||||||||| 1
OpEx Growth Rate 4.0% 8.0% 0.0% $5,505,000 $6,225,000 $720,000 |||||| 7
Price Change 3.0% -3.0% 9.0% $5,358,750 $7,383,750 $2,025,000 ||||||||||||||||| 3
Interest Rate 5.0% 8.0% 2.0% $5,415,000 $6,315,000 $900,000 ||||||| 4
Tax Rate 25.0% 30.0% 20.0% $5,474,000 $6,256,000 $782,000 |||||| 5
Debt Level $20,000,000 $30,000,000 $10,000,000 $5,490,000 $6,240,000 $750,000 |||||| 6
ONE-WAY SENSITIVITY — REVENUE GROWTH RATE IMPACT ON YEAR 1 NET INCOME
Growth Rate -10.0% -5.0% 0.0% 3.0% 5.0% 8.0% 10.0% 15.0% 20.0%
Revenue $45,000,000 $47,500,000 $50,000,000 $51,500,000 $52,500,000 $54,000,000 $55,000,000 $57,500,000 $60,000,000
COGS $24,750,000 $26,125,000 $27,500,000 $28,325,000 $28,875,000 $29,700,000 $30,250,000 $31,625,000 $33,000,000
Gross Profit $20,250,000 $21,375,000 $22,500,000 $23,175,000 $23,625,000 $24,300,000 $24,750,000 $25,875,000 $27,000,000
OpEx + D&A $15,480,000 $15,480,000 $15,480,000 $15,480,000 $15,480,000 $15,480,000 $15,480,000 $15,480,000 $15,480,000
EBIT $4,770,000 $5,895,000 $7,020,000 $7,695,000 $8,145,000 $8,820,000 $9,270,000 $10,395,000 $11,520,000
Interest Expense $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Net Income $2,827,500 $3,671,250 $4,515,000 $5,021,250 $5,358,750 $5,865,000 $6,202,500 $7,046,250 $7,890,000
% Change vs Base -51.8% -37.4% -23.0% -14.4% -8.6% 0.0% 5.8% 20.1% 34.5%
TWO-WAY SENSITIVITY — NET INCOME BY GROWTH RATE & COGS %
COGS % ↓ / Growth → -5.0% 0.0% 5.0% 8.0% 10.0% 15.0% 20.0%
45.0% $7,233,750 $8,265,000 $9,296,250 $9,915,000 $10,327,500 $11,358,750 $12,390,000
50.0% $5,452,500 $6,390,000 $7,327,500 $7,890,000 $8,265,000 $9,202,500 $10,140,000
55.0% $3,671,250 $4,515,000 $5,358,750 $5,865,000 $6,202,500 $7,046,250 $7,890,000
60.0% $1,890,000 $2,640,000 $3,390,000 $3,840,000 $4,140,000 $4,890,000 $5,640,000
65.0% $108,750 $765,000 $1,421,250 $1,815,000 $2,077,500 $2,733,750 $3,390,000
70.0% ($2,230,000) ($1,480,000) ($730,000) ($280,000) $15,000 $577,500 $1,140,000
NOTES
• Tornado analysis ranks risk drivers by impact magnitude on Net Income
• Yellow highlighted cells indicate base case assumptions
• Two-way table shows combined effect of revenue growth and cost structure changes