Use sensitivity analysis, scenario analysis, and goal seek/solver to evaluate different scenarios and forecast how a business is going to perform.
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1. Goal Seek / Solver: using goal seek, we can find an input to reach our desired output. For example, how many sales do we need to generate to make a million dollars. Excel Solver is the advanced version of this, where we can choose multiple inputs and set constraints to reach our desired output.
2. Sensitivity Analysis: using a sensitivity analysis table we can evaluate how changing a set of inputs will affect our profitability. The inputs we change are the price range and the quantity sold range. This is one of the functions on the What-If-Analysis section under the data tab of Excel.
3. Scenario Analysis: using a scenario analysis, we can see how different revenue and cost forecast will affect our profitability. For this we create a base, best, and worst case scenario, and use the choose formula to create a dynamic model.
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Chapters:
0:00 - Intro
0:27 - Goal Seek & Solver
6:25 - Sensitivity Analysis
9:22 - Scenario Analysis
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Excel Financial Modeling | Sensitivity & Scenario Analysis
Теги
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