Why Financial Models are important!

Posted 1 CommentPosted in Financial Modelling

A prerequisite for understanding and making business decisions is to understand its financial consequences. For a proper understanding it is necessary to consider alternative options, to analyse various scenarios of key input variables and to perform sensitivity analyses of output data to changes in input data. Financial models are used to explore all such aspects […]

General Structure of our Project Finance Model

Posted Posted in Financial Modelling

The general structure of our project finance model is illustrated in the diagram below: One of the essential elements of our project finance model is that different calculations are made for distinct phases of the respective project – the development phase, the construction phase and the operation phase together. The sources and uses statement is […]

Typical Financial Modelling Mistakes

Posted Posted in Financial Modelling

Typical financial modelling mistakes include Forgetting to copy formulae right-across all columns Inserting a constant (hard-plug) in a calculation sheet (for „comfort“ reasons) and forgetting to replace it with a link / formula Sums are wrongly built (esp. after inserting rows at the top or at the bottom of the area to be summed up) […]