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Improved Financial Modelling Methodology – April Fools 2013

If you’re reading this, then you know that we believe in keeping financial models clean and efficient. The modern financial model has become bloated and is often 10MB or greater in size, taking up unnecessary space and creating problems transmitting … read more

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Offset Function in Excel

The OFFSET( ) function returns a cell or range of cells that is a specified number of rows and/or columns from the reference cell. In this Tutorial we will explain the most common offset() applications and mistakes that are made … read more

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ADSCR (Average DSCR) in financial modelling

There are two different ways to calculate the average DSCR (“ADSCR”) that could result in different numerical outcomes. What are the methods? What are the limitations that we should be aware of? And which one shall be used? DSCR (Debt … read more

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Range names in Excel

Range names are a useful tool in Excel that allows you to assign a name to a single cell or a range of cells. This tutorial describes how to create range names including the dynamic range and how to work … read more

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Custom formats in Excel

Using custom formats in Excel can significantly improve the presentation of your spreadsheets and financial models. In this tutorial we give you an overview of the main functionality and also look closer at some more advanced examples with conditional formatting. … read more

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Working Capital – Trade Debtors and Trade Creditors

It is important to recognize the “Trade Debtors” and “Trade Creditors” in a cashflow model because it captures the cash cycle of the company, i.e. not all of the “Revenue” actually earned in a given period is received in the … read more

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Dynamic charts – the why, the what and the how

Why use a dynamic chart? Charts and/or graphs can be very useful in visually displaying information and statistics to tell the users a story. A dynamic chart within your summary makes it more interactive by having several inputs that can … read more

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Organisational benefits of implementing best practice financial modelling

Financial modelling, unlike other areas of finance, is unregulated and lacks generally accepted practice guidelines. Combined with the purpose of most financial models this means that Model Risk is a very real concept. Accordingly, the majority of the world’s financial … read more

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