There are two types of financial models – single and multi-sheet models. Single sheet or also known as vertical models contain the different areas of the model on a single sheet, while a multi-sheet model is composed of separate sheets for every single area of the model. In general,...

Financial models serve as a virtual representation of a business. Their main purpose is to build a reasonable proxy of the future and support informed business decisions. The best way to assess the profitability of a company or a project is by examining the financials it is expected to...

The minimum objective of financial models is to be free of logical errors and calculation mistakes. However, a few additional details separate good and ok models. In this article, we will point at several practices respected by all proficient modelers. Please take a careful look, as these principles can...