Business Planning
Basic Financial Modeling Principles. Cost Classification
10.07.2013When developing a financial model for a business plan, it’s necessary to decide which view of data to implement. If finance indicators are more or less standard and uniform, a user should rely only on oneself regarding costs and make own choices relying on objectives. Read more»
Basic Financial Modeling Principles. Amortization and Depreciation
05.07.2013
Depreciation is non-monetary item of costs which shows decrease in building, equipment, or other assets value within time. The amount on which this cost decreases refers to the production price.
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Basic Financial Modeling Principles. Methods of Interest Calculation
27.06.2013The article gives general information of how to cost of credit is valuated, which calculation methods are used, differentiates simple and compound interests and gives insight into annuity and actuarial methods of interest calculation Read more»
Basic Financial Modeling Principles. Planning Horizon
03.08.2012Planning horizon is a period of time a business plan covers. Figuratively speaking, if compare a company with a car, planning horizon is distance of highlights. Read more»
Basic Financial Modeling Principles. Break-even Point
19.07.2012In our previous article we have modeled sales amount and its influence on gain and costs. This helps us to have a look at such an important indicator as break-even point. Read more»
Basic Financial Modeling Principles. Financial Leverage
11.07.2012In our previous article we enabled in a model function to define in balance liabilities own and borrowed sources of financing. Expenses on payment of interest change in an income statement depending on the number of loans. Read more»
Basic Financial Modeling Principles. Equity and Borrowings
09.07.2012In our previous articles we supposed that operation of company is financed from own funds. In this article we will improve our financial model so that it could take into account borrowings and reflect their influence on balance and income. Read more»
Basic Financial Modeling Principles. Sales Volume
06.07.2012In our previous article we have defined what a financial model of a company is and how it works. Moreover, we have pointed out some main equations that should be followed. In this article we will talk about sales volume modeling and describe its influence on balance sheet and income statement values. Read more»
Basic Financial Modeling Principles. Balance Sheet and Income Statement
22.06.2012
Loans for Business Development
Bank lending
Bank lending plays a major role in financing for small and medium business (SMB) development as financing from funds market (by the means of issuance of stocks and bonds) is unavailable for this sector. Because of credits high-performance enterprises can develop much faster than they would be if only own funds were available. Read more»
