← Back to Portfolio

Portfolio / Expertise / Financial Modeling

Financial Modeling

A financial model should forecast, not guess. I build driver-based models grounded in variance history — units, price, and mix move the P&L, not optimistic assumptions — then stress-test the plan before anyone commits to it.

The Workflow — How I Approach It

1

Start from the P&L

Build the model on the actual statement and its historical trends — not on a blank sheet of assumptions.

2

Build drivers, not assumptions

Units, price, mix, and cost behavior drive the forecast — every line is traceable to a driver.

3

Pressure-test scenarios

Base, downside, and upside each get a full model — not a single “hope case.”

4

Tie back to accounting

Connect the model to cash flow and the balance sheet — a plan without a cash view isn’t a plan.

5

Stress the plan

Ask the hard question: what breaks at −15%? Where is the buffer, and what consumes it?

6

Package the decision

The model ends in a clear recommendation and an explicit ask — not a spreadsheet handoff.

My Operating View — The 2 Cents

Assumptions are a choice, and most forecasts are optimistic by default. My 2 cents: let history set the baseline and make the upside a separate scenario. A model you can’t break is a model you can’t trust — and a forecast that ignores cash is fiction.

What Worked & What Didn’t

What Worked

  • Driver-based models grounded in variance history held up against actuals.
  • Scenario stress-testing forced honest conversations before commitment, not after.

What Didn’t

  • Optimistic single-line assumptions that looked fine in the deck and failed in the quarter.
  • Models that ignored cash — “profitable” plans that didn’t survive the cash view.