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About this lesson
Introduction and the semantics of what constitutes "best" in "best practice". We consider a good model has four key attributes: Consistency, Robustness, Flexibility, and Transparency.
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An overview on the best practices used when preparing a financial model.
When to use
To refer to when building a financial model.
Financial Modeling Basics:
- This course sets the scene for building a financial model.
- It provides necessary concepts, functions and features to build a financial model.
- It is not just theoretical. There will be examples throughout.
- Where possible, keep it simple:
- Comprehension, named cells, arrays, “megaformulae”
- All data entry should only occur once and be clearly defined.
- No hard coded data in formulae.
- Input conventions should be consistent.
- Model should “read” from left-to-right, front-to-back.
- Treatment of repeatable sections.
- Models should adhere to the following four key qualities:
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