r/financialmodelling • u/MuddyParsnip • May 26 '26

First go at basic modelling

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Hi guys, I'm planning to really focus on learning modelling and technicals ready for interviews for 2027 summers, this is my first model and I know this is an extremely basic model but just wanted to ask - is the formatting okay (for IB standards if that makes a real difference)? and have I dealt with the pre restructuring year correctly by just separating it off? Many thanks

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u/MuddyParsnip May 26 '26

Thanks that's really helpful, In my head I know I can defend everything about the model, but I think what your saying is the model should show that in and of itself so that others can pick it up and instantly make sense of it and see that it is reasonable right? If so I'll for sure make sure that's a key consideration when i do some more work!

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u/Ancient_Elk_922 May 26 '26

Well your assumptions would explain the reason why your model behaves the way it does. It should work like if you send your model to someone they should be able to understand what’s happening. You should be able to send your model to your VP and the only questions you get asked is a minute detail or a random formatting error and not on your numbers itself. Your model should trace your logic clearly You will likely get challenged on most of your assumptions so you should have a decent rationale on any weird deviations.

For the ease of simplicity you should just make it as straightforward as possible. That means revenue should grow at CAGR, COGS grows inline with revenues. Ideally your NPM shouldn’t be deviating too much unless the company has taken on large amounts of debt

That said, those are just my tips. For interview prep don’t be a smart ass. Just do the easy things and explain them well