Working with more than one timeline in a model is common. Modellers need to be able to take data calculated on an annual basis and present it on a quarterly basis. The principles used in this guide may be used whenever balances calculated using less frequent time periods (e.g. annually) need to be presented using a more frequent time period (e.g. quarterly). In this modelling guide, we will work with balances calculated on an annual basis that need to be presented on a quarterly basis.

1. Financial Modelling
HANDBOOK
TIMELINE
financialmodellinghandbook.com
CONVERSION
Balances: annual to quarterly

2. ABOUT THE FINANCIAL
MODELLING HANDBOOK
Financial modelling should be collaborative. Collaboration reduces error, speeds up development time and lowers cost. The Financial Modelling Handbook is a collaborative, crowd-sourced guide to building better financial models using the FAST Standard.
www.financialmodellinghandbook.com/contribute

3. financialmodellinghandbook.com
Financial Modelling
HANDBOOK
RASHIM
Rashim Raheja is a financial modeller with F1F9’s Oil and Gas team. She likes reading novels and has a keen interest in sketching and painting.

4. Working with more than one timeline in a model is common. Modellers need to be able to take data calculated on an annual basis and present it on a quarterly basis.
The principles used in this guide may be used whenever balances calculated using less frequent time periods (e.g. annually) need to be presented using a more frequent time period (e.g. quarterly).
In this modelling guide, we will work with balances calculated on an annual basis that need to be presented on a quarterly basis.
financialmodellinghandbook.com
Financial Modelling
DOWNLOAD THIS GUIDE AND THE ACCOMPANYING EXCEL EXAMPLE
HANDBOOK
TIMELINE
CONVERSION
Balances: annual to quarterly

5. If you are not familiar with modelling balances, download this introductory guide before you begin.
It will explain the two different types of line item in a balance and offer standard model components that can be used for all balances.
Financial Modelling
HANDBOOK
BEFORE YOU BEGIN . . .
Also available:
Timeline conversion – Balances: quarterly to annual

6. financialmodellinghandbook.com
Financial Modelling
HANDBOOK
BASICS FOR CONVERTING TIMELINES
There are four basic points that should be considered before we begin:
Worksheets containing different timelines should have the same number of columns. This helps to retain consistency when taking data from one timeline to another.
The timeline header of the destination worksheet should be clear and specific to the presentation timeline.
1
2
2

7. financialmodellinghandbook.com
Financial Modelling
HANDBOOK
BASICS FOR CONVERTING TIMELINES
Where data based on one timeline is imported to a worksheet that is based on a different timeline, the imported data should be marked in italics.
Italics provide a sign that the imported data is alien to the underlying structure of the presentation worksheet.
The timeline on which data is being presented should be presented without italics (i.e. a normal format).
3
4
3
4

8. financialmodellinghandbook.com
Financial Modelling
HANDBOOK
INGREDIENTS FOR CONVERTING BALANCES
To present annual balances on a quarterly timeline, we need three ingredients:
1) Balances imported from calculation sheet with annual timeline;
2) Model period ending dates – annual; and
3) Model period ending dates - quarterly.

9. financialmodellinghandbook.com
Financial Modelling
HANDBOOK
INGREDIENTS FOR CONVERTING BALANCES
To calculate annual balances on a quarterly timeline, we will need to use the SUMIF function.
The formula is: SUMIF(model period end dates – annual, current model period end date – quarterly, balances).
The first J column of each range in the SUMIF formula is column anchored.
This fixes the starting point of both ranges under consideration. As we move along the timeline, the range expands to cover everything from the current period back to the start of the range.