Financial Modelling Handbook

Kenny Whitelaw-Jones

Modelling revenue - solution

The main sections of the revenue calculation should be somewhat familiar since we saw them earlier in the book when we were practising our essential skills. Download revenue section solution model: To obtain the worked example file to accompany this chapter buy the financial modelling handbook. I have set up

Modelling revenue - conceptual model & assignment

Note: This lesson begins from the completed file from the previous lesson: To obtain the worked example file to accompany this chapter buy the financial modelling handbook. Modelling objectives: * Model revenue per the specifications of the case; * Flow revenue into our income statement; * Decide what to do about invoice payment

Section completion checklist

We will pick up more errors if we do small reviews frequently.

Wiring up the financial statements

Connecting the 3 statements is a useful first step in building the model.

Checking the timeline of our model

It's important to sort out the timeline early in the model build process as it can be painful to change it later.

Always have a hypothesis

We are sense making creatures. This can lead us to tell ourselves stories about results we see in our models.

What is this model for?

Before you begin any financial model build, make sure you know the purpose of the model.

Case study

Aurelius Power Solar acquisition

Part 4: We're ready to start building a model

A note on how this section of the book works.

How to add a sparkline to any calculation with a single keystroke.

With sparklines, it's possible to have a "mini-chart" next to every key line item.