The purpose of a Capital Table is to provide financial information on the business entity for a given balance sheet. It provides information necessary for an accountant to prepare the balance sheet properly and to calculate the value of equity as of a given point in time. It allows the owner or manager to compare net tangible assets and liabilities with the total equity on the balance sheet. Capital tables are required under the Securities Exchange Commission regulations.

A Capitalization Table shows how owners and managers use their combined equity to perform various actions and meet various financial obligations. A cap table tells a shareholder the percentage of his stake of the company that is owned by other shareholders. The sum of all such percentages is called the enterprise value (EV). startups can be calculated by dividing the total stockholders’ equity by the total number of outstanding shares. A cap table provides information necessary for the management to determine if the owner’s retained equity is enough to pay for the debts of the company.

Capitalizing on an Excel template for a capital table can save the accounting job of an accountant. The user can select the columns for the enterprises value, retained earnings, capital expenditures, current assets, long-term assets, and short-term liabilities in the cap table. The user can also change the values in the spreadsheet to suit his needs. Once the data is ready in the excel worksheet, he can use the ‘Data’ button to upload it into Microsoft Excel. Some investors may choose to download the data to their computer to create visual presentations to show the actual percentages of dividends paid by the corporation.

startups on an Excel template for a capital table is beneficial to founders because they can analyze the data easily. They can see at a glance whether their proposed shareholdings are sufficient to finance their start-up costs and expenses. The Excel file can also be used to determine the amount of initial capital needed by the company to operate for one or two years. If the investors find that the capital amount is inadequate, they can choose to sell some of their shares or other options such as options and warrants. The data can then be recalculated to show a more accurate value of capital.

The data on the cap table sheets can also be combined with the exit waterfall for a well-calculated total capitalization. The exit waterfall provides investors with the historical price per share information as well as the net asset value per share information. The Excel template for capitalization also includes the depreciation cost basis for calculating the EPS. Using startups , investors can calculate the exact value of the company shares.

Determining the correct values of the shares and the capital structure at the right time is very crucial for investors. The values of the shares and the capital structure are updated whenever the company issues new stocks, issues stock dividends or repurchases some of its stock. It is also possible to update the data on the capital structure through an easy formula that calculates the net cash flow from the current period based on the net cash inflows and outflows. Investors can use the same calculating method for the CapEx balance sheet as they do for the capital table. The only difference between the two is that for the CapEx calculation, the effect of changes in share price as reflected on the market can be calculated.

The formula used to calculate the net cash inflows and outflows is called the CapEx formula. The investors can modify the formula by including the investment type, number of shares issued, the total number of employees, the weighted average time period over which the investment is made and whether the investment is made in cash or equity. The value of the company shares will be recalculated if the investors drop one or more employees. This method can be used before the shareholders’ meeting or after it. startups can use the current value of the company’s capital structure as the starting point for the computation of the net worth.

The CapEx calculation is not only limited to net worth. The investors can also calculate their relative strength ranking in capital markets. startups are calculated with respect to the EPS generated by the cap table for the last five years. The investors can choose to rank themselves according to the quality of the company’s capital structure, the amount of dividend received and the industry sector where they operate. This excel template can be used for all types of financial analysis.