5g Model Builders' Course:

Model comparison

5g vs Traditional

Before we get into building a 5g model, let us compare a 3 statement traditional model to a 3 statement 5g model.

The first image is from a popular standard known as FAST.

The second images is the FAST model converted to 5g+ dynamic arrays

BXL's formatting standards were applied to the 5g model so we can know which is which. This is important because without the formatting changes, the models would look identical.

Appearance

The purpose of this is to demonstrate that 5g+ Dynamic Array models can look the same as traditional models.

Results

If we look at the numbers, we will see the results are identical as well.

Logic

About the only real difference between these two models is the number of formula cells. This chart shows the 5g model's formula count (dark teal) compared to the traditional model (medium teal) by worksheet. The 5g model has far fewer formulas by a factor greater than 28 to 1. That's greater than 96% formula cell error risk reduction.

Course Outline

Course Start

Compare Traditional to 5g Models

Intro to Dynamic Arrays

One cell one formula
The HASH# symbol
Demonstration

5g Bridges the Skills Gap

Model Structure

Cover
Table of Contents
InpV
InpC
InpT
Time
Depr
Debt
Calcs
Statements
Checks

Importing 5g Functions

Building worksheet Time

Timelineλ
Inflationλ

Building worksheet Depr

Fixed Assets Table
Depreciateλ
DepreciateLabelsλ
DepreciateSumsλ
SumContainsλ

Building worksheet Debt

Loans Table
Installmentsλ
DebtLabelsλ
SumRCλ

Building worksheet Calcs

Revenue: ScheduleRatesλ
COS: SumAλ
CAPEX
Working Capital
- WC, AR: Movementλ
- WC, Inv
- WC, Other: ScheduleValuesλ
- WC, AP
- WC
Financing
- Equity: Corkscrewλ
- Debt
- Tax
Retained Earnings
Cash

Building Worksheet Statements

Income Statement
Cash Flow Statement
Balance Sheet

Building Worksheet Checks

The risk reduction is huge. If we are serious about driving errors out of our models, we MUST consider the 5g approach because no other methodology comes close to preventing errors by design.

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