Financial Statements Modeling 2020 Learn With A Professional

Explore introduction to financial statements modeling through our analysts prep program training material, helping students learn financial modeling and build core knowledge before advancing to the valuation course.

Forecast the income statement, balance sheet, and cash flow with supporting schedules to improve projections; build a fully integrated dynamic model with scenarios and a circuit breaker.

Explore financial statements modeling by examining income statements, balance sheets, and cash flow statements, and develop operations, industry, and accounting skills, plus Excel for evaluating historical and future cash flows.

Explore types of financial models—earnings (profit and loss), recapitalization, DCF analysis, and leveraged buyout modeling—across modules two, four, and five, and prepare for common technical interview questions in finance.

Set up a historical financial statements model and forecast the income statement, depreciation, and working capital. Link balance sheet, cash flow, equity, and debt schedules for sanity checks in Excel.

Crafts a step-by-step forecast of income statement, balance sheet, and cash flow statement using depreciation, working capital, amortization, and stockholders' equity, with drivers and multiple scenario assumptions in Excel.

Forecast the income statement by anchoring the first year with stable margins and a driven revenue growth rate, then drag formulas for depreciation, taxes, and net income across periods.

Explore depreciation and amortization concepts, including straight-line and accelerated methods, tax benefits in early years, and forecasting from tangible assets to intangible assets like trademarks and software.

Forecast depreciation and amortization by building a depreciation schedule linked to net sales, capex, and property, plant and equipment, using straight-line depreciation and defined years.

Learn how working capital measures liquidity and operating efficiency, excluding cash and short-term debt, and forecast the balance sheet via turnover ratios for receivables, inventory, payables, and accrued liabilities.

Build and balance the balance sheet by forecasting total assets and liabilities, compute working capital ratios for receivables, inventory, and payables, and apply judgment on assumptions.

Learn to forecast the balance sheet by analyzing assets, liabilities, and owners' equity at a point in time, including cash, accounts receivable, inventory, property, plant and equipment, and goodwill.

Forecast balance sheet using turnover ratios to estimate accounts receivable, inventory, and other current assets from revenue, then reconcile with the cash flow statement.

Explore the cash flow statement’s three parts—operating, investing, and financing activities—and how net income, depreciation, capex, changes in working capital, and debt and equity financing shape cash flow.

Forecast and reconcile the cash flow statement with the balance sheet by modeling operating, investing, and financing activities; link net income, working capital, and capex to cash and equivalents.

Learn to balance the balance sheet by linking cash flow items to working capital changes, including accounts receivable, inventory, accounts payable, depreciation, capex, and intangibles.

Forecast the cash flow statement and balance sheet by linking net income to retained earnings, incorporating amortization, and adjusting intangibles to balance the model.

Forecast and complete the stockholders equity schedule by accounting for issuances, repurchases, and dividends, and link to financing activities while applying issuance and buyback price 75 and 25% payout.

Set up and verify the stockholders' equity schedule by linking beginning and ending balances to the balance sheet, incorporating net income, and validating the match across years.

Model equity issuances and share repurchases, linking average shares to the income statement and balance sheet via paid-in capital and cash flows.

Model dividend payout as 25 percent of eps, projecting per-share and total cash outflows, reflect in financing activity and adjust the stockholders equity schedule via retained earnings.

Develop debt schedule by modeling interest-bearing debt, forecast interest expense and debt pay down, and link these items to the income statement and cash flow statement in a circular model.

Set up the debt schedule by linking ending balances from the balance sheet, populating revolver and long-term debt, and ensuring the 2019 ending balance flows correctly.

Forecast ending cash and debt by calculating cash available to service debt from free cash flow, applying a minimum cash cushion, and modeling revolver draws and repayments.

Calculate interest expense and interest income by applying 5% to revolver debt average balance and long-term debt average balance, and multiply interest income by the average cash balance.

Complete the debt schedule and link revolver and long-term debt movements to financing activities. Drag formulas across and verify balance sheet balance to finalize the financial model.

Make the model fully circular by linking interest income and expense with the net income statement, debt schedule, working capital, and cash flow statement, using iterative calculations.

Link interest income and expense to the income statement in a fully circular model, enable iterative calculation in excel, validate with f9, and run upside, downside, and base-case scenarios.

Build upside, downside, and management scenarios in a dynamic financial model, using linked drivers and a choose switch to drive revenue, tax, and capex, then perform sanity checks.

Link revenue, costs, and drivers to build a dynamic financial model with links across drivers. See how changing case scenarios yield different cash flows and valuations within the dcf framework.

Create a circuit breaker to dynamically control interest income and expense, using an if statement and anchoring, enabling scenario analysis and preventing unwanted circular references in a financial model.

Perform a practical sanity check by comparing margins with historical data, verify the balance sheet and cash balance, and ensure consistent debt schedules and cash flow.

Print the model, trace relationships on paper, and ensure it balances. Redo the exercise to grasp formulas, techniques, and best practices for clean, professional formatting that meets bulge bracket standards.

Gain foundational skills in financial statements modeling as part of the analysts prep program training material, building core knowledge before advancing to the valuation course.

Analyze the stock chart and press releases to assess fundamentals and decide whether a company is a growth, decline, cyclical, asset, or turnaround story, then build and sanity-check the model.

Explore the core financial model framework, covering the income statement, balance sheet, cash flow statement, depreciation and store build-up schedules, with equity issuance and repurchase schedules and Wall Street consensus.

Chipotle's long-term stock history, the 2015 E. coli outbreak impact, and the resulting turnaround driven by restructuring, quality controls, and leadership changes.

Learn to perform diligence by reviewing the company website's investor section and press releases to analyze stock performance, revenue, and EBITDA margins during turnarounds.

Explore how to read the Chipotle 10-K, focusing on business, MD&A, risk factors, financial statements, balance sheet, income statement, and cash flow to link earnings and stock performance for modeling.

Assess the due diligence findings by reviewing the stock chart, press releases, and sec filings, then interpret the recovery story and improving cash flows in the model.

Forecast Chipotle’s income statement using the Wall Street consensus and normalize gap versus non-gap figures. Identify one-time charges from press releases and the 10-K to refine adjusted earnings for forecasting.

Analyze historical restaurant financials in Excel, calculating margins for food, beverage and packaging, labor costs, and operating expenses to reveal cash flow and capex per dollar of revenue.

Forecast the income statement using a revenue build-up approach, combining revenue per restaurant, restaurant counts, and growth from Wall Street consensus to project total revenue.

Forecast the income statement by linking revenue, setting margins for costs like food and beverage and labor, and projecting capex, taxes, and stock-based compensation.

Forecast depreciation and amortization by pulling property, plant and equipment data from SEC filings, applying straight-line depreciation, and linking capex as a revenue percentage to Wall Street estimates.

Forecast working capital on the balance sheet by linking current assets and current liabilities to previous years, ensuring correct formatting and dragging formulas across.

Set up balance sheet by copying previous year and linking cash and equivalents to cash flow change, ensuring balance sheet balances and reconciles with cash flow statement.

Link the cash flow statement to the balance sheet by updating cash and equivalents for the year and tracing net income, depreciation, and stock-based compensation through operating activities.

Forecast working capital by updating current assets and liabilities, calculating the net change in working capital. On the cash flow statement, apply turnover-based ratios for accounts receivable, inventory, and accounts payable.

Forecast capital expenditures by extracting capex from the depreciation schedule, applying currency formatting, and adjusting property, plant and equipment to achieve balance in the model.

Forecast the cash flow statement and balance sheet for Chipotle's model, reconcile cash flow with the balance sheet, and complete the financing activity section and debt schedule.

Analyze the stockholders’ equity and share repurchase schedules from the 10-K, tracing treasury stock moves, dividends, and updated shares outstanding to reconcile the balance sheet.

Adjust basic shares outstanding to the ending balance from the repurchase schedule and calculate dilution impact by using the median of the prior two years to reflect the share buyback.

Examine dividend payout by reviewing the 10 K, which reveals a zero dividend policy and no declared or paid dividends.

Identify no current or long-term debt on the balance sheet, yet include a revolving line of credit in the debt schedule to reflect potential future financing despite the 10K.

Add a revolver line of credit to the balance sheet under total liabilities, ensuring the prior year balance is zero and the formula captures the line of credit.

forecast the debt schedule by calculating free cash flow from operations, tracking revolver drawdowns and repayments, and aligning ending and beginning cash balances with minimum cash cushion.

Forecast interest income by calculating ending cash balances from 2017 and 2018, linking to the income statement, and using the average cash balance to derive the interest on cash equivalents.

Link and adjust the revolver draw down in the financing activity section to keep the revolver line on the balance sheet dynamic, and set the sequence to previous year plus.

Link interest income to the income statement and ensure the line item reflects a minus sign and increases income before taxes, then verify the balance sheet balances.

Build a circuit breaker guarding a financial model by toggling zero or one for the interest income item, with sanity checks and alignment of income statements and the debt schedule.

Massaging eBid margins and related operating costs aligns the model with consensus and Wall Street expectations through a rigorous sanity check of the operating model.

Perform a sanity check by benchmarking your model against equity research reports, adjusting depreciation and amortization to align with Wall Street consensus and validate EBITDA and margins.

Forecast financial models to reveal the business story and improve accuracy through due diligence. Align your numbers with the instructor, note questions for a one-on-one review, and prepare for valuation.