Forecasting Methods in Budgeting and Modelling Budgeting and modelling are integral components of financial planning and decision-making processes. Forecasting methods are employed to estimate future revenues, expenses, cash flows, and other financial metrics, enabling organisations to develop realistic budgets and create robust financial models. By accurately projecting future outcomes, businesses can optimise resource

Sensitivity Analysis Explained: Definitions, Formulas and Examples Sensitivity analysis is an indispensable tool utilized in corporate finance and business analysis to comprehend how the variability in key input variables influences the performance of a business. By methodically adjusting the inputs and observing the ensuing effect on outputs, analysts can discern which variables have

LBO Modelling Explained: Definitions, Concepts, and Examples LBO (Leveraged Buyout) Modelling is one of the core tools for M&A in corporate finance. LBO models are a type of financial model which is built to evaluate the financial viability and returns of a leveraged buyout transaction. Article Contents What

Financial modelling and forecasting is a crucial life skill for anyone with ambitions to be an entrepreneur or who wants to be in management in business. The expertise in accounting and Excel that you will develop will lead you inevitably to understand where value comes from in a business and where it is destroyed. You

What is Compound Annual Growth Rate?  Compound annual growth rate (CAGR) is a useful metric for presenting a variable growth trend by its implied weighted-average compound growth rate over a period of time: It smooths out volatility in growth and accounts for the compounding effect from year to year.   CAGR represents the constant

Year-over-Year (YOY): Definitions, Formulas, and Examples Understanding year-over-year (YOY) growth is a fundamental skill for graduates entering corporate finance roles. Comparing period-over-period performance provides insight into the financial health and trajectory of a business. Article Contents What is Year-Over-Year Growth? Formula for Calculating YOY Growth Calculating YOY Growth in

Let me start by saying that in financial analysis, valuation and modelling there is no substitute for knowing your numbers! This is no doubt the case when it comes to looking at PPE. PPE is one of the core elements of any financial analysis.  That link between investing in the business and growth in