TWELVE CORE MODEL BUILD SKILLS
Mastering the art of financial modeling based on the FAST standard requires proficiency in twelve core skills.
Here’s a breakdown of these essential skills:
1. Adding Input:
Ability to input data accurately and efficiently into the model.
2. Creating a Link:
A FAST-based model is link-based, so creating links between different cells or worksheets ensures data consistency and integrity.
3. Creating a Placeholder:
Setting up temporary values or cells to hold data until final values are available.
4. Copying a Link:
Replicating links between cells or worksheets to streamline data flow and analysis.
5. Creating a New Calculation:
Calculations are presented in blocks, and the formulas need to be concise to derive meaningful insights from the data.
6. Applying Number Formatting:
Formatting numbers to improve readability and presentation of your financial model.
7. Copying a Calculation Block:
Duplicating blocks of calculations to expedite modeling processes and maintain consistency.
8. Setting Up a New Balance Corkscrew:
All balances have the same structure; maintaining this structure in your financial model improves data consistency and integrity.
9. Creating a New Worksheet:
Establishing additional worksheets with the same structure is important because this reduces the time spent in creating an entirely new structured worksheet.
10. Relocating Inputs:
Adjusting the placement of input data to optimize the model’s structure and functionality.
11. Creating a Quick Chart:
Generating visual representations of data to facilitate analysis and decision-making.
12. Tracking Financial Outputs:
Monitoring and analyzing the model’s financial outputs to assess performance and make informed decisions.
Proficiency in these twelve skills will significantly enhance your effectiveness in building financial models.
By mastering these fundamentals, you’ll be better equipped to create robust, accurate, and insightful models that meet the highest standards of excellence in financial modeling.
