The greenmatch Cash Flow Waterfall

14/04/2021 | Tobias Bitterli & Oliver Stock, greenmatch AG

The cash flow waterfall is mainly used in financial modelling to get as quickly as possible a precise overview of the financial structure of a project.

The greenmatch cash flow waterfall gives you a complete overview of all project-specific cash flows and the intended use of all received amounts. Thus, for example, potential liquidity gaps or excessive leverage can be identified at a glance. It is therefore an important tool for the proper planning and structuring of a project over its entire lifecycle. But how is the greenmatch cash flow waterfall actually structured?

The greenmatch cash flow waterfall on the basis of an example project

Structure of the greenmatch cash flow waterfall

In addition to the revenues generated by a project (cash-in, represented by a black line), all cost items (bars) are shown over the entire project lifecycle. This essentially includes all operating costs (opex = dark blue), debt service (debt repayment and interest = green), taxes (light blue), formation and dissolution of reserves (red) and capital flows to the equity provider (purple).

Liquidity planning as the basis for distribution management

As already mentioned, possible liquidity gaps can be easily identified by means of the cash flow waterfall. If a project is not structured in a sustainable way (e.g. through too short bank maturities or too high leverage), more cash-outs may be foreseen than the project can generate on its own at a specific time. These liquidity gaps should be remedied in good time through discussions with the financing bank or through other financing options. In addition, the cash flow waterfall can be used to identify the ideal times for distributions, i.e. dividend payments, and thus plan the payouts to shareholders.

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greenmatch is the leading web-based investment application for renewable energies. The highly flexible application models the complete financial project lifecycle of your wind, photovoltaic, hydro and biomass projects and optimizes your workflow. Its collaborative and integrative approach allows projects to be analyzed and executed more efficiently, comprehensibly and reliably. Our solutions empower project developers, investors and banks in making reliable decisions and in increasing the success of their transactions. greenmatch is an innovative model to limited traditional spreadsheet applications.

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