Overview

This is an attempt to list and explain the key concepts of developing financial models (also applicable to any other kinds of reports, budgets or forecasts). I am demonstrating how to structure a model, setup the timeline, format cells by their purpose, make scenarios, create checks and controls, use flags. The underlying Excel file contains a comprehensive demo model showing the most common working sheets (capex, funding, working capital, economic assumptions) and explaining how the income statement, balance sheet and cash flow statement are built and tied together.

 

The booklet and the Excel file also give specific examples which cause complexities to many analysts (circular calculations, proper demonstration of variances, calculating IRR and NPV with a few zero cashflow periods in the beginning etc.)

 

This publication is a work-in-constant-progress. Help me make it better – send me word what else you think I should add.

Reviews Add a review
No reviews yet

More From Andrei Okhlopkov

Browse our top rated business templates. See All
Cost-Volume-Profit (Breakeven) Analysis
37
5
Cost-Volume-Profit analysis is one of the fundamental types of analysis which deals with product profitability. It classifies the costs into…
“Budget-versus-Actual” Charts
101
1
This file contains magazine-quality charts in Excel to illustrate variances between budgeted and actual figures.  Professionally designed charts in business…
Due Diligence Tools and Methods
588
2
A prospective investor is concerned about the target’s: 1. Quality of earnings 2. Adequacy of working capital 3. Unrecorded or…
Van Westendorp’s Pricing Method
831
0
Introduced in 1976, this method has now become one of the most popular approaches to perform pricing analysis. The method…
Cap Table with Investor Returns and Charts
973
2
Most startups are initially financed by their founders. They contribute relatively small amounts of money for the company to make…
Array Formulas in Excel
1,844
236
My publication on this obscure to the many yet a useful and powerful feature of Excel shows how array formulas…
See All