Financial Modelling from Scratch Masterclass using MS Excel

The video provides an introduction to building model inputs

In this lecture, we define some ground rules of modelling including

1. Identifying inputs and coloring them with a color scheme

2. Coloring derived output cells with a different color scheme

In this lecture, we build the revenue assumptions of the Company including the following:

1. Defining the products/ services of the Company

2. Projecting the units to be manufactured over the next 3-5 years using monthly growth rates

3. Projecting the price of the product over the next 3-5 years using monthly growth rates

In this lecture, we build the cost assumptions of various variables that are used directly to manufacture our product. We use different methods of projecting the Direct Costs including the following:

1. Based on no. of units of product manufactured

2. As a % of revenue

In this lecture, we introduce the concept of indirect costs and discuss their significance.

In this lecture, we create assumptions for each of the indirect costs including the following using different modelling techniques:

1. Rental

2. Manpower Costs

3. Travel Costs

4. Miscellaneous Costs

This video provides an introduction to creating your first Profit and Loss Statement

In this lecture, we build a Profit and Loss Statement from scratch. We also discuss the following concepts:

1. Gross Profit

2. Gross Margin

3. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

4. Earnings Before Interest and Taxes

5. Net Income or Profit After Tax or Net Comprehensive Income

This video provides an introduction to creating the inputs for your first Balance Sheet.

In this lecture, we explain some of the Balance Sheet Terms like

1. Accounts Receivables (Number of Days)

2. Accounts Payable (Number of Days)

3. Inventory/Stock (Number of Days)

4. Fixed Assets / PP&E

5. Capital Sources - Debt and Equity

We also discuss how we can make assumptions for these factors which will help us build the Balance Sheet in the next video.

This video provides an introduction to creating your first Balance Sheet!

In this lecture, we built Balance Sheet from the scratch by creating separate schedules for:

1. Debt Repayment

2. Depreciation

We then build the overall Balance Sheet using the Balance Sheet Assumptions from the previous lecture.

In this lecture, we get down to building our first cash flow statement. The instructor highlights the important difference between the three financial statements and builds the Cash Flow Statement step by step. You can expect to learn to create the following by the end of the lecture

1. Cash Flow from Operating Activities

2. Cash Flow from Investing Activities

3. Cash Flow from Financing Activities

4. Cash Balances at the end and beginning of each period

5. Balancing the Balance Sheet using the outputs of Cash Flow Statement

This lecture will also help the student reach the goal of creating all the three financial statements of the Company

Congratulations on completing the course and becoming a highly skilled financial modeler. Stay connected for many new courses. Till then, signing off!