Magnimetrics Library
Practical finance, Excel, valuation, and FP&A articles with downloadable working files where relevant.
The Perpetual Inventory System is a method of accounting for the number and value of goods on hand at any time. It helps with the vital task of keeping track of inventory levels so that we can timely replace goods when they run out and to ensure that we record the correct amount of revenue […]
Accounting standards (IRFS and US GAAP) require that we apply a conservatism principle when we assess the value of assets and transactions. The Net Realizable Value (NRV) is the amount we can realize from an asset, less the disposal costs. The most often use of the method is when we evaluate inventory and accounts receivable […]
Microsoft Excel is an essential tool for many businesses, but few fully utilize its automation capabilities to streamline repetitive tasks. You can use macros to automate almost any actions you typically perform manually in Excel. This can often result in substantial time savings from mundane business tasks. It can also significantly improve accuracy by minimizing […]
This article builds upon the theory discussed in Creating a Variance Analysis Model – Part 1. Be sure to read this article before looking at the more practical examples below. Building a Variance Analysis Model in Excel Let’s create an Excel model to perform our variance analysis. For the exercise, we will assume a simple scenario […]
Today we take a look at the Absorption Costing Method and how it is used to allocate cost to produced goods. Do not forget to download the Excel working file at the end of the article. What is Absorption Costing? Absorption Costing is a management accounting method for accumulating all costs associated with production in […]
Explore common Excel formula errors in finance and learn effective solutions to avoid costly mistakes in your financial models.
Artificial Intelligence (AI) is one of the most rapidly emerging and progressive technologies globally. We can define it as “the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings.” (Britannica, https://www.britannica.com/technology/artificial-intelligence) Over the next few years, AI will have significant influence not only in accounting and finance but […]
Financial modeling is a critical aspect of financial analysis and decision-making. Excel has long been the go-to tool for creating robust and dynamic financial models. However, working on complex financial models can be time-consuming and challenging. In this article, we will explore 10 time-saving tips to help you streamline your financial modeling process in Excel. […]
Introduction to Sales Trend Analysis Sales Trend Analysis looks at historical revenue data to identify patterns, used extensively in budgeting and forecasting. It is a useful method to detect short-term changes in revenue growth and performance. Trends A Trend is an upwards or downwards shift in the development of a metric over time. It’s useful […]
Seasonality is a characteristic of time-series where the data has predictable and somewhat regular fluctuations that repeat year over year. It is safe to assume that any pattern of data changes over one-year periods represents seasonality. It is usually driven by weather or commercial seasons. We have to differentiate the term from cyclical data, as […]
