EXCEL MODELS - all types | SENACEA (2022)

There is more to Excel models than just financial modelling. Here you can find all types of Excel models, classified based on scientific methods their deploy, industries they serve and the problem they solve.

You can also learn how to create an Excel model and what defines a good model.

EXCEL MODELS - all types | SENACEA (1)

1. What are Excel models?

Spreadsheet models are Excel-based systems that help understand and manage processes by describing and decomposing them. They are usually workbooks or file systems that allow applying scientific methods and industry knowledge to put real-life data into perspective. Then, it can be used to understand the relations between different factors, draw conclusions and act on them.

Models are simplified representations of what happens in the real world. They allow professionals to play around with different model variables & assumptions to simulate how the outcomes of complex processes would change. They may also use models to simulate scenarios that may happen in real life.

From financial performance to setting optimal pricing or accurately predicting the financial risk exposure, models enable companies and people to limit the guesswork in decision making and actively approach uncertainty.

2. What an excel model is used for?

Most companies use spreadsheet models to understand complex events without breaking a bank or using black-box systems. Most popular are the financial models but there are many others as well.

Excel is the most universal modelling tool allowing for quite an in-depth representation of reality with the use of mathematical, financial and statistical formulae. Also, econometric models and regression analysis are easily available and VBA programming can help increase modelling granularity or scale it.

Although there are many types of modelling software, the main advantage their offer is their industry-specific orientation and availability of benchmarking data. Such modelling systems often serve large firms with tailor-made solutions like this one allowing retailers to model how their product distribution across store shelves impacts sales and profits.

Others help optimise engineering challenges regarding energy consumption or the use of materials in production. Nevertheless,

Excel is also a great testing ground for advanced models before increasing the complexity of the modelling environment.

Excel models offer a very attractive combination of flexibility, simplicity and control. They allow to break down calculations and prediction systems into components that can be easily changed and tested.

3. What are the types of excel models?

Excel models can be divided into categories based on what scientific methods they deploy, what industries benefit from deploying them and what challenges they solve.

3.1 Excel Models by scientific methods used

These models play important role in describing problems and validating claims with the use of mathematics. They are often a part of a greater set of planning and forecasting tools, reassuring their users about the correctness of used methods.

Based on the methods used, Excel models can be classified as:

3.1.1 Quantitative Models which use mathematical equations, computations and may also deploy elements of statistics or econometrics

3.1.2 Statistical Models used to validate claims about the patterns in empirical data

3.1.3 Econometrical Models that deploy regression models and uncover their dependencies and limitations to render the causality observed in real live data

3.1.4 Probabilistic models that use probability calculus to calculate the expected value and probability distributions of random events, such as in random games or insurance claims

3.2 Spreadsheet models by industry & function

These models use data specific to chosen segments of the market or company departments. They may leverage business intelligence to predict sales or market insights to maximise investment ROI or minimise the risk exposure. The most popular types of industry-specific Excel models are:

(Video) 10 Million Rows of data Analyzed using Excel's Data Model

Excel models by industry & function
EXCEL MODELS - all types | SENACEA (2)

Financial Models

EXCEL MODELS - all types | SENACEA (4)



EXCEL MODELS - all types | SENACEA (5)

Engineering Models

EXCEL MODELS - all types | SENACEA (6)



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Banking & Financial Risk Models

Insurance Models

(Video) Excel Esports: ALL-STAR BATTLE
EXCEL MODELS - all types | SENACEA (8)

Supply Chain &

Logistics Models

Compensation &

Reward Model

EXCEL MODELS - all types | SENACEA (9)

Pharmaceutical models

EXCEL MODELS - all types | SENACEA (11)

3.2.1 Financial Models

Financial Models help to understand, predict and dissect different elements of financial performance. Usually, they regard the performance of a company and help describe its revenue capabilities and cost structures as well as cashflows.

3.2.2 Investment Modelling Spreadsheets

Sometimes, the investment models are also referred to as financial. They usually refer to portfolio modelling where investors try to achieve their goals under the risk-related limitations and assumptions set for themselves.

Quite often they deploy VBA, especially for complex derivative pricing models. They can model the price of stocks, derivatives, commodities but also the investments in properties and various, less popular asset classes.

3.2.3 Behavioural Models

Investors and economists alike also use behavioural Models where they try to understand the motivations behind people’s decisions even when they seem irrational. They can measure satisfaction, confidence in actions, the likelihood of purchasing the product or even the happiness perceived by people.

They become increasingly important as different sciences recognise the importance of behavioural aspects in how we make decisions. Such models are also used in marketing modelling as well as in politics and can include in-depth profiling of personality traits.

3.2.4 Engineering Models

Although often used in environments outside of Excel, many engineering models deploy Excel to simulate the conditions of closed-circuit systems. They may model energy efficiency or consumption as well as lay out computational problems related to mechanics or physics.

3.2.5 Production/Manufacturing Models

Optimising the production of any product can be complex. The variable cost of materials and energy may change in a non-linear fashion so can the product demand. If to add the limited flexibility of the production pipeline bandwidth and specific properties of the manufactured goods, production planning models may be needed to coordinate manufacturing efforts. They also often deploy catalogues of parts that may be stored in Excel or external database.

3.2.6 Banking & Financial Risk Models

Banks run on models. In the business of connecting money with people, planning and understanding the environment is crucial. Apart from demand modelling, banking risk is increasingly important. Accurate risk modelling systems allow traditional banking services to actively adjust their risk exposure and manage their capital requirements under the regulatory scrutiny defined by Basel frameworks.

At the same time, investment and stock market risk can also be better understood with models. Although banks have the capacity to create their own internal systems, not always it's the most viable solution. Also, the chances are that the inputs and outputs of such systems are processed in Excel or Google Sheets.

(Video) Use the Excel Data Model to avoid using VLOOKUPs when analyzing data

3.2.7 Insurance Models

Accurate pricing of the insurance contributions or premiums wouldn't be possible without modelling, sometimes done in spreadsheets. Leveraging probabilistic models by actuaries and quantitative analysts allows to accurately price the risk and create high-resolution risk profiles. Using appropriate probability distribution types and statistical data is fundamental for this and at a smaller scale, Excel is well-equipped to support it.

3.2.8 Supply Chain & Logistics Models

Planning in the logistics & warehouses is immensely important. Depending on the scale of such operations, Excel may either be used as the main engine or a tool to process data and analyse outputs. Single warehouses or a fleet of a medium-size production or distribution company can run their resourcing in Excel.

3.2.9 Compensation & Reward Model (HR)

Many companies and People Directors prefer to create tailor-made reward and benefit systems. That's especially important in industries that employ many commission-oriented professionals and rely on sales performance. Accurately setting the commission and reward structure to incentivise the most profitable behaviour is often worth a bespoke system, which could be automated with VBA for Excel. Quite often it's combined with salary band modelling and optimisation of the company structure.

3.2.10 Pharmaceutical models

Big Pharma uses models in their research and development as well as to inform their sales and promotion. It's a very interesting industry for modellers as medicines are usually high-margin products that display low pricing elasticity and their testing requires a high level of statistical and econometrical scrutiny.

3.3 Challenge-oriented Excel models

There are a plethora of models which solve various interdisciplinary problems or serve multiple business areas. They usually act as tools that allow finding a solution to an open-end problem by assuming a certain (usually simplified) set of goals.

Excel Models can solve a multitude of challenges, such as:

3.3.1 Resource allocation - determining how to use the resources in a most productive way which could mean maximising the value of produced goods, minimising travel distance (travelling salesman model), saving energy or even maximising the happiness

3.3.2 Behavioural Models attempt to understand the logic behind people's emotions, preferences and choices. Such models are used in marketing but also in political campaigns.

3.3.3 Various optimisation models help to maximise or minimise chosen target values. From maximising the profit, production capacity, through minimising the cost, to optimising the nutritional values of a meal plan or optimising the packaging shape.

3.3.4 Grading & KPI models allow measuring performance and are a unique category as this type of modelling creates unified measures and means of comparison. From schools and teachers that won't settle for simple grading systems to certification centres and employee performance reviews, measuring performance can be approach with models.

Besides that, models have many more functions. Excel models...

  • Can help answer business and life questions to inform decisions

  • Can allow attributing effects to causes and establishing causality

  • Can give a chance to understand complex problems and distil the most crucial result drivers

  • Can help to forecast and predict future

  • Can be treated as proof of prudent approach (e.g. when convincing investors or Financial Regulators)

  • Can broaden the horizons of a company by highlighting things otherwise unnoticed

4. Excel Model attributes

Creating a model is an open task. Although there is no clear definition of what a perfect model is, there are significantly better and worse ones. Here are the attributes of good Excel models:

  • Well-suited for challenges they solve

  • Easy to use

  • Separating inputs from outputs and file mechanics

  • Flexible

  • Having optimal complexity to usability ratio

  • Are compatible with systems used

Models should be neither too simple nor too detailed. Their level of complexity should reflect the required precision which is often determined by the benefits from accurate decision making. That stresses the importance of commercial justification of the model use. Except when learning, the models have to present a utility for the business.

Then, they have to be optimal tools for the environment they are used in. When relying on benchmarking, industry-specific solutions are best. When in need of flexibility, spreadsheets are most versatile.

When heavy-duty simulations are required, a database might be needed or at least an automated VBA modelling solution in Excel. Otherwise, when ongoing collaboration is suggested, the Google Sheets can come in handy, especially with Apps Script.

(Video) Frozen Food Excel Financial Model

5. Who uses Excel models?

All professionals can benefit from understanding the reality and determinants of the processes that concern them. Excel models are used by scientists, engineers, sales professionals, marketing managers, finance teams, accounting people, banking, investments & insurance professionals. Also, NGOs and government agencies use models to make better-informed decisions.

6. What are the elements of an Excel model?

There are three main parts of Excel models:

  • Input data which can be historical data gathered by the business or obtained from external databases

  • Model assumptions and the background knowledge justifying the selection of used modelling methods

  • Model outputs may involve the results of scenario simulations, dashboards, analysis of generated solutions and stress testing.

Models are also put to a perspective with a commentary that can describe the model background, purpose, limitations and refer to specific industry practices, additional information resources. Models can be created with the use of multiple software programmes and technologies. An Excel model can be paired with analysis or research obtained outside of spreadsheets or programmed externally.

7. What are the steps for building a spreadsheet model?

All models are different and many simple yet practical Excel models wouldn't require such scrutiny when created.

They may even be suited for a purpose relying solely on the expertise of the creator.

Model building steps may vary depending mainly on its purpose and complexity.

Usually, such a process would involve a gradual formation of the model based on the scientific and industry standards, coordinated with the investigation of the data availability, limitations and constant validation of the assumptions.

When acquiring data, it's important to assure its high quality and correct capture of the information that underpins the model. For more complex or dispersed data such as text communications over social media, data mining techniquesmay come in handy.

8. What are the features of a good model?

Good is the model that serves its purpose. Even if the purpose is safe to sleep at night or avoiding the risk, the model may be deemed successful. Some models may describe such complex phenomenons that understanding them may take months or even years.

Good models can be characterised as being:

  • Simple

  • Manageable

  • Accurate

  • Statistically valid

  • Displaying causality

  • Following best industry practices

When you can improve any of the above parameters without worsening any other - go for it.

(Video) Combine multiple Excel files using PowerQuery

And if you are not sure how to create a model from your dreams, contact our Excel Experts who contributed to this article and specialise in creating the majority of the models listed here.

EXCEL MODELS - all types | SENACEA (13)


How do I get all data types in Excel? ›

To open the data types gallery, go to the Data tab in Excel > Data Types group > expand the dropdown. Note: Most data types require a Microsoft 365 subscription to use, but data types from different sources may have different requirements to use them.

What are the 4 types of Excel? ›

Excel data types are the four different kinds of values in Microsoft Excel. The four types of data are text, number, logical and error. You may perform different functions with each type, so it's important to know which ones to use and when to use them.

What are the limitations of using a spreadsheet model? ›

Spreadsheets are not user-friendly.

Spreadsheets are simply not user-friendly. They're customizable and familiar, but when you need to handle a lot of data, you'll find yourself scrolling through hundreds, if not thousands, of rows and columns. It's difficult to make spreadsheets easy to ingest and easy to read.

What are the 11 data formats in Excel? ›

The following are the type of number formats available in Excel.
  • General. General is a number format selected as the default by excel for any number you type into the spreadsheet. ...
  • Number. Number Format is exclusively used when you are working with numbers. ...
  • Currency. ...
  • Accounting. ...
  • Date. ...
  • Time. ...
  • Percentage. ...
  • Fraction.
11 Oct 2022

Why my Excel dont have data types? ›

Try repairing Microsoft Office 365. That often does something to your Office setup which makes Stock and Geography data types reappear. In Windows go to Control Panel | Programs & Features | Office 365 | Change then choose Online Repair.

How do you clean up dirty data? ›

How to clean data
  1. Step 1: Remove duplicate or irrelevant observations. Remove unwanted observations from your dataset, including duplicate observations or irrelevant observations. ...
  2. Step 2: Fix structural errors. ...
  3. Step 3: Filter unwanted outliers. ...
  4. Step 4: Handle missing data. ...
  5. Step 5: Validate and QA.

How do you scrub a list in Excel? ›

Project Video - How to Scrub a List - YouTube

How do I get rid of unwanted data in Excel? ›

Delete Duplicates in Data:

Select the data and Go to Data –> Remove Duplicates. If your data has headers, ensure that the checkbox at the top right is checked. Select the Column(s) from which you want to remove duplicates and click OK.

What is data type in Excel? ›

In a Data Model, each column has an associated data type that specifies the type of data the column can hold: whole numbers, decimal numbers, text, monetary data, dates and times, and so on.

What are the 5 functions in Excel? ›

The most frequently used functions in Excel are:
  • AutoSum;
  • IF function;
  • LOOKUP function;
  • VLOOKUP function;
  • HLOOKUP function;
  • MATCH function;
  • CHOOSE function;
  • DATE function;

What are the 3 types of data validation in Excel? ›

Settings Tab

Any Value - It removes any existing data validation. Whole Number - It allows only whole numbers. For example, you can specify that the user must enter the number between 0 to 30. Decimal - The user must enter a number with decimal values.

Why is it important to develop spreadsheet models? ›

The simple spreadsheet is one of the most powerful data analysis tools that exists, and it's available to almost anyone. Major corporations and small businesses alike use spreadsheet models to determine where key measures of their success are now, and where they are likely to be in the future.

What are the limitation of Excel? ›

Worksheet and workbook specifications and limits
FeatureMaximum limit
Total number of rows and columns on a worksheet1,048,576 rows by 16,384 columns
Column width255 characters
Row height409 points
Page breaks1,026 horizontal and vertical
32 more rows

What are the strengths and weaknesses of spreadsheets? ›

The Advantages & Disadvantages of Spreadsheets
  • Advantage: Organizing Data. ...
  • Disadvantage: User Bias. ...
  • Advantage: Streamlines Calculations. ...
  • Disadvantage: Learning the Syntax Takes Skill. ...
  • Advantage: Multiple User Access. ...
  • Disadvantage: Lack of Security.

What is the most common Excel format? ›

XLS – Excel file extension

This extension is the most common and default type in the spreadsheet generated by Microsoft office. Prior to Excel 2007, the file extension was XLS.

How many formats are in Excel? ›

You can add between 200 and 250 custom number formats, depending on the language version of Excel that is installed on your computer.

What are types of formatting in Excel? ›

There are six tabs in the Format Cells dialog box: Number, Alignment, Font, Border, Patterns, and Protection.

How do you change data type in Excel? ›

Convert a data type
  1. Select the Date column, select Home > Transform > Data Type, and then select the Date option. You can convert other numeric types, such as percentage or currency. ...
  2. To return the transformed data to the Excel worksheet, Select Home > Close & Load.

How do I change data type to text in Excel? ›

  1. Open the Excel workbook.
  2. Click on the column heading to select entire column.
  3. Click Format > Cells.
  4. Click the Number tab.
  5. Select “Text” from the Category list.
  6. Click OK.

What are rich data types? ›

The detailed information is contained within cards and this information is easily extracted into the Excel worksheet. At present, there are two rich data types available. Stocks and Geography. These can be located on the Data ribbon under the grouping Data Types.

What are three types of dirty? ›

Common types of dirt include: Dust: a general powder of organic or mineral matter. Filth: foul matter such as excrement. Grime: a black, ingrained dust such as soot.

What is raw data called? ›

Raw data (sometimes called source data, atomic data or primary data) is data that has not been processed for use. A distinction is sometimes made between data and information to the effect that information is the end product of data processing.

What is clean function in Excel? ›

Removes all nonprintable characters from text. Use CLEAN on text imported from other applications that contains characters that may not print with your operating system. For example, you can use CLEAN to remove some low-level computer code that is frequently at the beginning and end of data files and cannot be printed.

How do I organize large amounts of data in Excel? ›

8 Ways to Organize Your Spreadsheets in Excel
  1. Use Templates. ...
  2. Highlight the Important Data. ...
  3. Sort Your Data. ...
  4. Use Multiple Sheets! ...
  5. Hide Unnecessary Data. ...
  6. Hyperlinked Cells Can Save You a Lot of Time. ...
  7. Use Formulas and Functions Correctly. ...
  8. Shortcuts Can Help You Work Faster.
27 May 2021

What is the difference between data cleaning and data cleansing? ›

Data cleansing, also referred to as data cleaning or data scrubbing, is the process of fixing incorrect, incomplete, duplicate or otherwise erroneous data in a data set. It involves identifying data errors and then changing, updating or removing data to correct them.

How do I delete data in Excel without deleting the formula? ›

Right click on one of the selected cells and choose "Clear Contents". Your formulas remain, but the rest of the cells are cleared.

How do I remove thousands of rows in Excel? ›

There is also a very handy keyboard shortcut to delete rows (columns or cells). Press Ctrl + – on the keyboard. That's it!

How do I delete thousands of rows in Excel without crashing? ›

Prevent Excel from Slowing or Freezing when Deleting Rows

What is formula in Excel? ›

A formula in Excel is used to do mathematical calculations. Formulas always start with the equal sign ( = ) typed in the cell, followed by your calculation. Formulas can be used for calculations such as: =1+1. =2*2.

What are the 7 common uses for Excel? ›

The 7 Most Popular Uses Of Excel For Your Business
  • Data Entry and Storage. At its most basic level, Excel is an excellent tool for both data entry and storage. ...
  • Collection and Verification of Business Data. ...
  • Administrative and Managerial Duties. ...
  • Accounting and Budgeting. ...
  • Data Analysis. ...
  • Reporting + Visualizations. ...
  • Forecasting.

What are the 8 types of data validation rules? ›

Types of Data Validation
  • Data Type Check.
  • Code Check.
  • Range Check.
  • Format Check.
  • Consistency Check.
  • Uniqueness Check.
  • Presence Check.
  • Length Check.
7 Apr 2022

What methods do you use to validate data? ›

Common types of data validation checks include:
  1. Data Type Check. A data type check confirms that the data entered has the correct data type. ...
  2. Code Check. A code check ensures that a field is selected from a valid list of values or follows certain formatting rules. ...
  3. Range Check. ...
  4. Format Check. ...
  5. Consistency Check. ...
  6. Uniqueness Check.
5 May 2022

What makes a good Excel model? ›

Models must be clear, concise, and fit for the purpose intended. If you can follow it on a piece of paper (ie, no Formula bar), it's transparent. Most Excel users are familiar with keeping inputs and assumptions away from calculations — and keeping inputs and assumptions and calculations away from outputs.

What are some best practices for spreadsheet models? ›

21 Expert Excel best practices & tips
  • Think about the order of worksheets. Put different kinds of data on different worksheets. ...
  • Keep your timeline consistent. ...
  • Label columns and rows. ...
  • Avoid repetitive formulas. ...
  • Avoid hiding data. ...
  • Keep styling consistent. ...
  • Use positive numbers.

What is a spreadsheet model? ›

A spreadsheet model generally consists of input in the form of numbers and text, processes in the form of formulae and macro automation, and output which is usually the result of calculations and data manipulation. In small, unstructured models these distinct areas are often combined in a piecemeal fashion.

Is Excel enough for data visualization? ›

When exploring data and making charts or diagrams, 62% of people report using Excel because of its flexibility and ease of use. The ease and flexibility of Excel often makes it a first stop for creating data visualizations.

Is Excel good for data analysis? ›

Excel is a great tool for analyzing data. It's especially handy for making data analysis available to the average person at your organization.

How Excel is used in data analysis? ›

Analyze Data in Excel empowers you to understand your data through natural language queries that allow you to ask questions about your data without having to write complicated formulas. In addition, Analyze Data provides high-level visual summaries, trends, and patterns.

Why shortcut keys are important in Excel? ›

An often-overlooked method of increasing productivity when working in an Excel model is to use Excel shortcuts, or shortcut keys. These shortcut keys perform major functions that, when used instead of clicking in the toolbar, dramatically increase efficiency and speed.

What is the first thing you should do in using spreadsheet? ›

Enter data

To work with data on a worksheet, you first have to enter that data in the cells on the worksheet. Click a cell, and then type data in that cell. Press ENTER or TAB to move to the next cell.

What is the purpose of spreadsheet? ›

A spreadsheet is a tool that is used to store, manipulate and analyze data. Data in a spreadsheet is organized in a series of rows and columns and can be searched, sorted, calculated and used in a variety of charts and graphs.

How do I find data type in Excel VBA? ›

Then, open the VarType function. Now, enter the variable name as the argument of the VarType function. Now, run the code and see what we get in the message box. We got the result as 8 because VBA has certain codes for each kind of variable data type, so below is the detailed list for you.

What are the 5 types of data in Excel? ›

In a Data Model, each column has an associated data type that specifies the type of data the column can hold: whole numbers, decimal numbers, text, monetary data, dates and times, and so on.

How do I find the format of a column in Excel? ›

Available number formats in Excel
  1. Select a cell or a cell range.
  2. On the Home tab, select Number from the drop-down. Or, you can choose one of these options: Press CTRL + 1 and select Number. Right-click the cell or cell range, select Format Cells… , and select Number. ...
  3. Select the format you want.

How many data formats are available in Excel? ›

Eleven data formats are available in Microsoft Excel for data Storage. Example: Number – Stores data as a number. Currency – Stores data in the form of currency.

How many data types in Excel VBA? ›

VBA data types
Data TypeStoredRange of Values
Byte1 Byte0 to 255
Integer2 Bytes-32,768 to 32,767
Single4 Bytes-3.402823E38 to -1.401298E-45 for negative values, 1.401298E-45 to 3.402823E38 for positive values
Long4 Bytes-2,147,483,648 to 2,147,483,648
10 more rows

How do you find the type of a variable? ›

To get the type of a variable in Python, you can use the built-in type() function. In Python, everything is an object. So, when you use the type() function to print the type of the value stored in a variable to the console, it returns the class type of the object.

Which datatype is not available in VBA? ›

In some cases, however, Visual Basic simply has no equivalent. For example, data pointers aren't available.

What are the 3 types of data validation in Excel? ›

Settings Tab

Any Value - It removes any existing data validation. Whole Number - It allows only whole numbers. For example, you can specify that the user must enter the number between 0 to 30. Decimal - The user must enter a number with decimal values.

What types of MS Excel? ›

Generally, there are four data types in Excel, and these are number, text, logical, and error data.

Is there a format formula in Excel? ›

On the Home tab, in the Styles group, click Conditional formatting > New Rule… In the New Formatting Rule window, select Use a formula to determine which cells to format. Enter the formula in the corresponding box.

What are the 3 types of cell references in Excel? ›

Now there are three kinds of cell references that you can use in Excel: Relative Cell References. Absolute Cell References. Mixed Cell References.

What is the fastest way to format cells in Excel? ›

Select the cells with the Excel Style. Right-click the applied style in Home > Cell Styles. Select Modify > Format to change what you want.

What is the most common Excel format? ›

XLS – Excel file extension

This extension is the most common and default type in the spreadsheet generated by Microsoft office. Prior to Excel 2007, the file extension was XLS.

What is Excel in short answer? ›

Excel is a spreadsheet program from Microsoft and a component of its Office product group for business applications. Microsoft Excel enables users to format, organize and calculate data in a spreadsheet.


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