Forecasting the balance sheet for Ford
Now that we have the ratios for Ford, the management wishes to improve them for the 2018 financial year.
There is one ratio in particular that management would like to be improved – the debtor days ratio, which is currently sitting at 146 days, while better than Nissan (244 days), is still much higher than Toyota, the industry leader (31 days).
Management would like to bring the debtor days down to below 100 days.
These variables have already been set:
filtered_balance_sheet
contains the receivables row of the balance sheet.ddays = 99
is the target debtor days.sales = 156776
is the existing sales total.
The formula to calculate debtor days is: \(\dfrac{\text{closing balance debtors}}{\text{sales}} * 365\).
Cet exercice fait partie du cours
Financial Forecasting in Python
Exercice interactif pratique
Essayez cet exercice en complétant cet exemple de code.
# Calculate the forecasted sales
f_sales = ____ * ____
# Solve for the forecasted debtors' ending balance
f_debtors_end = ____ * ____ / 365
print("If sales rise by 10% and the debtor days decrease to {:.0f} then the forecasted closing balance for debtors will be {:.0f}.".format(ddays, ____))