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Properties

Overview

Each financial item in NorthStella has specific properties that can be customized.

To edit a financial item's properties:

  1. Open the Dashboard
  2. Click on the item on the Active Module menu
  3. Navigate to the Properties menu

Inclusion

The Inclusion property determines whether a financial item should be included in the model or not.

Display name

The Display name is the text string used throughout the model to identify a financial item.

It may appear in various sections of the model, depending on the item to which it is applied. Please refer to an item's page under the Display name section to understand where the Display name will flow troughout a model.

Forecasting methods

The Forecasting nethod determines how a financial item is projected over the forecasted.

NorthStella offers several forecasting methods to suit different types of items and modeling needs. Please refer to an item's page under the Forecasting method section to understand which method can be selected.

Hardcoded input

The Hardcoded input method is a forecasting approach in which the user manually enters the value of a financial item for each forecasted period, directly into the Excel model.

To implement this method, NorthStella generates a single editable row in Excel under the financial item’s schedule:

  1. Forecasted value (manually entered by the user)

Users must provide:

  • Historical data
  • Forecasted value

See below for an illustrative example:
[NTD: Insert screenshot showing the Excel implementation.]

When to use:

  • The item does not follow a consistent trend and requires case-specific input
  • You have detailed or externally sourced projections (e.g., from management or consultants)
  • You want full control over each forecasted value

Best practices:

  • Ensure inputs are clearly documented and sourced
  • Avoid manual entry when a structured forecasting method (e.g., ratio or growth) could yield similar accuracy with greater efficiency
  • Use comments or a legend to indicate any one-off assumptions or adjustments

Last historical

The Last historical method is a forecasting approach in which a financial item is assumed to remain constant across all forecasted periods, using the last available historical value.

To implement this method, NorthStella generates a single formula-driven row in Excel under the financial item’s schedule:

  1. Forecasted value (equal to the last historical value)

Users must provide:

  • Historical data to establish the base value

See below for an illustrative example:
[NTD: Insert screenshot showing the Excel implementation.]

When to use:

  • The item is expected to remain stable over time (e.g., certain fixed costs or recurring fees)
  • There is insufficient information to support more detailed forecasting assumptions
  • You want to build a conservative or placeholder forecast until better data becomes available

Best practices:

  • Use this method for items with low volatility or predictable renewals
  • Clearly label assumptions to distinguish between placeholder and finalized inputs
  • Regularly revisit these assumptions as more data becomes available

Nil

The Nil method is a forecasting approach in which the financial item is assumed to have no value throughout the forecast period.

To implement this method, NorthStella generates a single row in Excel under the financial item’s schedule:

  1. Value (set to $0 over the forecasted period)

Users must provide:

  • No input beyond selecting the Nil method

See below for an illustrative example:
[NTD: Insert screenshot showing the Excel implementation.]

When to use:

  • The item is discontinued or no longer relevant in the forecast period
  • The value is expected to be zero due to a strategic change (e.g., removal of a cost category)
  • You want to exclude an item from the forecast while preserving historical data

Best practices:

  • Use this method explicitly—don’t leave rows blank if the item should be forecasted at zero
  • Add notes to document the rationale behind the nil assumption
  • Reassess nil assumptions periodically to ensure they still reflect the underlying business reality

Growth rate

The Growth rate method is a forecasting approach in which a financial item is projected to increase or decrease over time using a fixed percentage.

To implement this method, NorthStella generates three rows Excel under the financial item's related schedule:

  1. Value from previous period
  2. Growth rate
  3. Value

Users must provide:

  • Historical data for the Value from previous period
  • Forecasted growth rate

See below for an illustrative example: [NTD: Insert screenshot showing the Excel implementation.]

When to use:

  • The item has consistent, period-over-period growth (e.g., revenue tied to market expansion)
  • Historical trends support the assumption
  • You need a fast, directional forecast before applying detailed inputs

Best practices:

  • Support your growth assumptions with data (e.g., historical CAGR, industry benchmarks, or management guidance)
  • Use conservative rates, especially when projecting long time horizons
  • Avoid unrealistic compounding assumptions

Ratio

The Ratio method is a forecasting approach in which a financial item is projected as a ratio of another item (e.g., as a % of revenue).

This method can be further customized using two fields:

  • Numerator. This is the base item for which the ratio will be applied
  • Type of ratio. For certain items, the ratio can be expressed as a i) percentage, ii) mulitple, iii) # of days

To implement this method, NorthStella generates three rows in Excel under the financial item’s schedule:

  1. Base item (e.g., Revenue)
  2. Ratio
  3. Forecasted value (Base item × Ratio)

Users must provide:

  • Ratio values over forecasted period

See below for an illustrative example:
[NTD: Insert screenshot showing the Excel implementation.]

When to use:

  • The item is tightly correlated with a key driver (e.g., rent as % of revenue, commission as % of sales)
  • Historical trends show a consistent relationship
  • You want to model items dynamically in relation to business scale

Best practices:

  • Anchor ratios to historical averages or industry benchmarks
  • Clearly document the chosen driver and reasoning behind the ratio
  • Be cautious of circular references—avoid using items that depend on each other in the same calculation loop

Amortization

Cash Sweep

Non-taxable

The Non-taxable property indicates that a financial item should be excluded from the forecasted tax calculation.

When this property is selected, NorthStella ensures that the item’s value does not impact taxable income. This setting is often used for items that are accounting-only adjustments or that fall outside of the taxable base.

To implement this, NorthStella applies a filter in the tax calculation schedule to exclude the item from pre-tax earnings.

See below for an illustrative example:
[NTD: Insert screenshot showing how the item is excluded from taxable income.]

When to use:

  • The item is non-deductible or non-taxable (e.g., permanent differences such as fines or penalties)
  • The item represents an accounting adjustment (e.g., unrealized gains)
  • You want to align the forecast with specific tax treatment rules

Best practices:

  • Review tax legislation or consult with tax advisors to confirm treatment
  • Document why the item was marked non-taxable
  • Reassess periodically to reflect any regulatory or structural changes

Non-cash

The Non-cash property indicates that a financial item affects accounting profit but does not impact cash flow.

When this property is enabled, NorthStella automatically excludes the item from the cash flow statement by creating a reversing entry in the indirect method reconciliation. This ensures the non-cash item is removed from net income when calculating operating cash flow.

To implement this, NorthStella:

  1. Flags the item as non-cash in the item’s properties
  2. Generates an adjustment row in the cash flow statement to reverse its impact on net income

See below for an illustrative example:
[NTD: Insert screenshot showing the cash flow adjustment in Excel.]

When to use:

  • The item reflects a non-cash accounting entry (e.g., depreciation, amortization, unrealized gains/losses)
  • You want to ensure an accurate reconciliation between net income and cash flow
  • The item affects reported earnings but not liquidity

Best practices:

  • Apply this setting consistently to all applicable items
  • Double-check that non-cash adjustments appear correctly in the cash flow reconciliation
  • Include notes explaining why the item is non-cash, especially if not obvious from the name