Use sensitivity analysis, scenario analysis, and goal seek/solver to evaluate different scenarios and forecast how a business is going to perform.
📝 Download the start file here: https://view.flodesk.com/pages/620fd889d328ec5152cf0a8f
👉 Excel for Business & Finance Course: https://www.careerprinciples.com/courses/excel-for-business-finance
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.
LEARN:
📈 The Complete Finance & Valuation Course: https://www.careerprinciples.com/courses/finance-valuation-course
👉 Excel for Business & Finance Course: https://www.careerprinciples.com/courses/excel-for-business-finance
📊 Get 25% OFF Financial Edge Using Code KENJI25: https://bit.ly/3Ds47vS
SOCIALS:
📸 Instagram – https://www.instagram.com/kenji_explains/
🤳 TikTok – https://www.tiktok.com/@kenjiexplains?lang=en
📹 My FREE videos with MoneyUnder30:
– Index Funds Explained: https://bit.ly/IndexFundsMU30
– How to Invest: https://bit.ly/HowToInvestMU30
– Stock Market Investing: https://bit.ly/MU30Stockmarketinvesting
– How Zero Commission Brokers make money: https://bit.ly/CommissionFreeTradeMU30
– 50/30/20 Budgetting Rule: https://bit.ly/503020Method
GEAR:
📹 My Favorite Books & Gear: https://kit.co/kenjiexplains
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
Chapters:
0:00 - Intro
0:27 – Goal Seek & Solver
6:25 – Sensitivity Analysis
9:22 – Scenario Analysis
Disclaimer: I may receive a small commission on some of the links provided at no extra cost to you.
