This report provides an in-depth evaluation of several key performance areas. Each checklist item is assessed using specific criteria, and detailed explanations along with the calculation logic are provided to support the scores.
Information Used: Revenue figures, growth rate, industry benchmarks.
Detailed Explanation: SmartDrone reported a revenue of $1.5 million with a 94% year-over-year growth. While this growth is impressive, it is essential to consider the base from which this growth is calculated. The drone industry, particularly the land surveying sub-sector, is experiencing a CAGR of 15.2%, indicating that SmartDrone's growth is significantly above the industry average. However, the absolute revenue figure is still relatively modest compared to larger industry players.
Calculation Logic: The score is based on the comparison of SmartDrone's growth rate with the industry average. A growth rate significantly above the industry average earns a score of 1, provided the revenue base is substantial enough to indicate sustainable growth.
Information Used: Financial statements, industry benchmarks.
Detailed Explanation: SmartDrone's net income is -$1,576,606, indicating a high burn rate. With total assets of $623,578 and cash equivalents of $124,576, the runway is limited. Industry benchmarks suggest a healthy startup should have a runway of at least 12-18 months, but SmartDrone's current financials suggest a shorter runway, potentially less than 6 months, which is concerning.
Calculation Logic: The score is determined by comparing the startup's runway with industry standards. A runway significantly below the 12-month mark results in a score of 0, indicating financial instability.
Information Used: Historical spending data, industry benchmarks.
Detailed Explanation: SmartDrone's financials show a high net loss relative to revenue, suggesting inefficiencies in fund utilization. Industry benchmarks for similar startups indicate a more balanced ratio of revenue to net income. The high burn rate and net loss suggest that funds are not being utilized as efficiently as possible, impacting overall financial health.
Calculation Logic: The score is based on the efficiency of fund utilization compared to industry benchmarks. A high net loss relative to revenue results in a score of 0, indicating poor fund utilization.
Information Used: Investment details, strategic plans.
Detailed Explanation: While SmartDrone has raised $664,548.39, there is limited information on how these funds will be allocated to drive growth and improve financial health. Clear allocation plans are crucial for investor confidence and strategic growth, but the current lack of detail is a concern.
Calculation Logic: The score is based on the clarity and specificity of fund allocation plans. A lack of detailed allocation results in a score of 0, indicating a need for clearer strategic planning.
Information Used: Comprehensive financial analysis, industry comparisons.
Detailed Explanation: SmartDrone's financial health is currently concerning. Despite impressive revenue growth, the high burn rate, short runway, and lack of clear fund allocation plans pose significant risks. The company needs to address these issues to ensure long-term sustainability and investor confidence.
Calculation Logic: The score is based on an overall assessment of financial health, considering all evaluated criteria. Significant concerns in multiple areas result in a score of 0, indicating poor financial health.