Blog
Expert guides on financial modelling, valuation, and forecasting. Built for finance professionals, founders, and analysts.
Debt Service Coverage Ratio (DSCR): Formula and How Lenders Use It
Learn the debt service coverage ratio (DSCR) formula, how lenders set minimum DSCR requirements by loan type, and how to stress-test and reverse-engineer loan sizing with a fully worked multifamily example.
Profit Margin Formula: Gross, Operating and Net Margin Explained
Learn the profit margin formula for gross, operating, and net margin, with a fully worked example, Excel formulas, and the mistakes that make margin comparisons misleading.
How to Handle Circular References in Excel
Learn what causes circular references in Excel financial models, how to enable iterative calculation safely, and how to build a circularity switch that keeps debt schedules from breaking.
Direct vs Indirect Cash Flow Method: Which Should You Use?
A complete comparison of the direct vs indirect cash flow method - how each is built, a worked example that reconciles both to the exact same number, the Excel formulas, and when to use which.
Scenario Analysis vs Sensitivity Analysis
Scenario analysis and sensitivity analysis both stress-test a financial model, but they answer different questions. Learn the difference, when to use each, and how to combine them, with a full worked example.
Payback Period: Formula, Calculation and Limits
Learn the payback period formula for even and uneven cash flows, how discounted payback period works, a fully worked example, and the key limitation that trips up most analysts.
Convertible Notes vs SAFEs: Which to Use
Compare convertible notes and SAFEs for early-stage fundraising: how valuation caps and discounts set the conversion price, why interest and maturity dates matter, and which instrument to use for your bridge round.
Precedent Transactions Analysis: A Step-by-Step M&A Valuation Guide
Learn precedent transactions analysis step by step: screen a defensible deal universe, calculate EV/Revenue and EV/EBITDA deal multiples, understand the control premium versus trading comps, and convert median deal multiples into an implied acquisition value, with a full worked example.
Cap Rate Explained: Formula, Examples, and How It Prices Real Estate
Learn what a cap rate is, the exact formula, and how it's used to price real estate - with a worked retail-center example covering going-in vs. exit cap rates, cap rate compression, and cash-on-cash return.
Rolling Forecast: How to Build One in Excel
Learn how to build a 12-month rolling forecast in Excel - the drop-one-add-one mechanic that keeps your forward-looking view continuously current, with non-volatile formulas and a full worked example.
Zero-Based Budgeting: How It Works (With a Worked Example)
A practical guide to zero-based budgeting (ZBB): how decision packages work, how to rank and fund them, a full worked example with Excel formulas, and how ZBB compares to incremental budgeting.
Break-Even Analysis in Excel
Learn how to build a break-even analysis in Excel: the break-even formula, contribution margin, margin of safety, target-profit volume, operating leverage, a worked numerical example, and a two-way price/cost sensitivity table.
