Powerful Dynamic Arrays Model with Monte Carlo Simulation
Originally published: 06/04/2020 07:46
Last version published: 09/04/2020 13:57
Publication number: ELQ-50983-4
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Powerful Dynamic Arrays Model with Monte Carlo Simulation

Newly released Dynamic Arrays functionality by Microsoft means models are now more powerful than ever!

Description
PLEASE MAKE SURE YOU HAVE THE LATEST VERSION OF EXCEL BEFORE DOWNLOADING AS THE MODEL WILL NOT WORK OTHERWISE!

Included is a short video, link to the recent webinar the underlying Excel Workbook as well as the PowerBI file included with the use of handy info graphics and tooltips.

This is the first of hopefully many more Dynamic Array models to be published on Eloquens.

Watch the video and the webinar to see how Dynamic Arrays will enable models to be more flexible and scalable than ever before.

Whilst the formulas seem complex there is only 1 formula needed per block of logic. Block modelling logic has been around for decades and good financial modellers build in this way to enhance accuracy and flexibility.

Dynamic Arrays takes that to a new level in that it doesn't allow any distribution inside the block where in "pre DA world" this is easily overwritten by a hardcode and one never knows until you use some error detection.

This will significantly reduce one of the biggest errors in models ie hardcoding in formulas. The use of Dynamic arrays means that formulas have to be consistent or it simply wont work.

Whilst the formula construction and is more complex (for example a simple corkcrew method is far more complex), the benefits in reduction in the number of formulas needed to be checked is game changing.

This is not a full 3-way model and we are currently working on a rolling historical and forecast 3-way model so look out for it.

Included is also the PowerBI export and PBIX file which shows how given the table structure its now even easier to bring Financial Modelling and Analytics closer together with this sort of structural enhancement from Dynamic Arrays.

During this pandemic we have added a 60% discount on the advertised price so be sure to use COVID19 to have this applied.

For this and more information be sure to visit out website for other useful tips in Financial Modelling.

Enjoy and please stay safe.

Cheers
Lance

This Best Practice includes
1. Introduction Video and Webinar 2. Dynamic Arrays Excel Model 3. PowerBI file (pbix) 4. PDF output from PowerBI

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Further information

To enable recipients to see the Power of Dynamic Arrays coupled with a PowerBI integration with info graphics and tooltips. This is the future of financial modelling and is likely to change the way financial models are going to be built in the future.

Learning new skills and ways of building and visualising models.

This is a forecast only model and is not a full 3-way rolling model with actuals. We are currently developing one.

PLEASE MAKE SURE YOU HAVE THE LATEST VERSION OF EXCEL BEFORE DOWNLOADING AS THE MODEL WILL NOT WORK OTHERWISE!

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The user community and author are here to help. Go ahead!

  • Abdul Ghafur BE, MCIOB, AClArb, CQS,610
    Hello,

    This is a good program with minimum entry of data where there is constant productions in a year. But it is not suitable if the productions are variable. Also not suitable for service projects with variable period and variable amount in each month.
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    4.3 / 5 (3 votes)

    please wait...