1 min readfrom Financial Modeling

Financial Modeling Color Coding?

Our take

Color coding in financial modeling is essential for clarity and effective communication, especially at the executive level. In your case, with a summary income statement heavily linked to detail sheets, it's understandable that a sea of green can overwhelm your audience. To enhance presentation, consider adopting a more varied color scheme that highlights key figures and insights. For example, use distinct colors for critical calculations or assumptions, while maintaining green for linked cells.

I took an excel training the street workshop and am familiar with color coding models such as JPM and others. For example, color coding cells green = linked to another sheet, black = calculation, blue = hard coded, red = something diff in this cell, purple = linked to cell in same sheet. However when I am finished, most of the numbers are in green as they are linked to other sheets. This is kind of a site for sore eyes for presenting at the exec level. I have a summary income statement model that is linked to cells from the detail so everything would be green. How are you guys color coding in the form shared at the executive level? In my case its a valuation where I have a summary and detail modified income statement.

submitted by /u/corymathews2011
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