Model Periodicity

This article explains model periodicity in Model Reef.

You will learn:

• What model periodicity is and what options exist.

• How periodicity interacts with timing, drivers and variables.

• What happens when you change the model's start, end and base frequency.

Timing Engine - Model Periodicity

Model periodicity defines the resolution of your forecast grid.

1. What model periodicity is

When you create a model you choose a base periodicity, for example:

• Daily

• Weekly

• Monthly

• Quarterly

• Semi annual

• Annual

This sets the size of the periods the timing engine uses to:

• Aggregate accruals

• Aggregate cash movements

• Present statements and dashboards

The underlying logic does not change. Only the frequency of periods changes.

2. Model start date, end date and duration

You can configure:

• Model start date

  • When the timeline begins.

  • Where historical and forecast series join.

• Model end date

  • How far into the future you project.

  • How long the valuation horizon is.

• Model duration

  • The number of periods between start and end based on periodicity.

When you change any of these, Model Reef:

• Regenerates the period grid.

• Reapplies variable timing and delay rules to the new periods.

• Keeps imported historicals aligned to their dates.

• Extends or trims forecast series accordingly.

You do not need to rebuild the model when you change horizons.

3. Changing base periodicity

If you change base periodicity, for example from monthly to quarterly or from quarterly to monthly:

• Existing series are resampled to the new grid.

• Accruals and cashflows are aggregated or spread as appropriate.

• Payment delays are recalculated based on the new period lengths.

• Depreciation, interest, tax and other timing based items are recomputed.

Statements, dashboards and valuations then use the new period structure automatically.

You should review key outputs after such changes to confirm they still match your intent.

4. Reporting views vs model periodicity

Reporting views (for example monthly, quarterly, annual) can be changed without altering the base model periodicity.

For example:

• A monthly model can be viewed as monthly, quarterly or annual by changing the report view.

• A weekly model can be viewed in weeks or aggregated to months or quarters.

In these cases:

• The underlying engine still runs at the original base frequency.

• Reports and charts simply aggregate periods for display.

This lets you forecast at a finer level than you present to stakeholders.

5. Choosing a periodicity in practice

Guidelines:

• Use monthly for most corporate planning, budgeting and valuation work.

• Use weekly where cash timing and working capital are highly sensitive, such as some retail, hospitality or construction cases.

• Use quarterly or annual for very long horizon or high level strategic views where detail is less important.

• Avoid changing periodicity unnecessarily once a model is in heavy use, as it changes the shape of outputs.

Make the choice based on how often important events happen and how frequently decisions need to be updated.

Related articles

• Professional Services & Consulting

• Build a DCF Model (FCFF)

• Cashflow Statement Overview

• Understanding the Interface