From today's session on Financial Modeling.
The models we build depend on the stories we want to tell and the questions we want to answer.
The most important of building the model is figuring out the question we are trying to answer.
Do that first before you start with Excel.
The models we build depend on the stories we want to tell and the questions we want to answer.
The most important of building the model is figuring out the question we are trying to answer.
Do that first before you start with Excel.
Our ability to generate scenarios for stress testing and sensitivity analysis is limited by acceptable and common ranges.
Understanding the distribution of drivers we are modeling can lead to richer and far more appropriate scenarios.
Understanding the distribution of drivers we are modeling can lead to richer and far more appropriate scenarios.
While most model builders are comfortable with putting together a balance sheet and income statement, quite a few struggle with statement of cash flows. If they can or could, they would skip it.
You can't balance your balance sheet or pass model cross checks without one.
You can't balance your balance sheet or pass model cross checks without one.
Be clear about the lens you are using. Short term or long term?
Quite possible and common to be completely wrong with one and absolutely on the money with the other.
Quite possible and common to be completely wrong with one and absolutely on the money with the other.
Resolving circular references is just like getting rid of recursion in your code.
And if you play with circular references enough, you will ultimately get hit by the curse of #REF errors.
Try resolving that on a multi tab sheet.
And if you play with circular references enough, you will ultimately get hit by the curse of #REF errors.
Try resolving that on a multi tab sheet.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
