Main parts of a financial model
SG&A
Selling, General and Administrative Expenses summarizes the majority of the company's costs, from payroll, to marketing, sales, rent and services.
WK-CAPEX
Assets owned by the company, such as cars, computers and servers are stored here and their depreciation is automatically calculated for tax purposes.
COGS
Costs of Good Sold may be used differently across industries. It usually accounts for the cost of materials and inventory. For software companies, servers are usually accounted for here.
REVENUE
Estimating revenue and projecting it accurately is key. It's also relevant to connect these predictions to their associated COGS and SG&A requirements.
