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Financial Modeling

Model structure and reference discipline, revenue and cost drivers, working capital, PP&E and debt schedules, a fully linked three-statement model with a revolver, checks, scenario switches, sensitivity tables and model review.

13 lessons · 40 exercises · about 7 hours · 3 free lessons

You will be able to

  • Structure a model into inputs, calculations and outputs
  • Forecast revenue, costs and supporting schedules from drivers
  • Link the income statement, balance sheet and cash flow so the model balances
  • Add checks and scenario switches that make a model trustworthy
  • Fund shortfalls with a revolver, flex outputs in sensitivity tables and review someone else's model

Designed for: Analysts, FP&A and corporate finance professionals, and candidates facing modeling tests.

Building an Integrated Financial Model

Module 1 · Modeling discipline

  1. Structuring a modelSeparate inputs, calculations and outputs, and format a model so anyone can audit it.25 minFree
  2. Relative, absolute and mixed referencesWrite one formula that copies correctly across a whole row, column or grid.20 minMembers
  3. Checks and error trapsBuild balance, cash and equity checks that flag errors the moment they appear.30 minMembers

Module 2 · Operating model

  1. Revenue driversForecast a retailer's revenue from store count and revenue per store, with price and traffic separated.30 minMembers
  2. Forecasting costsForecast COGS and operating expenses with the driver that really moves each cost.30 minMembers
  3. Working capital scheduleForecast receivables, inventory and payables from days, and get the cash flow sign right.30 minFree
  4. PP&E and depreciation scheduleRoll forward PP&E with capex and straight-line depreciation by vintage.25 minMembers
  5. Debt schedule and interestRoll forward debt, charge interest on the average balance and track credit metrics.30 minMembers

Module 3 · Three-statement integration

  1. Linking the three statementsLink Rawdah's income statement, cash flow and balance sheet so the model balances, with cash from the cash flow.55 minMembers
  2. Cash sweep and revolverKeep a minimum cash balance by drawing on a revolving facility in lean years and sweeping surplus cash to repay it — without a circular reference.45 minMembers

Module 4 · Analysis and presentation

  1. Scenario switchesBuild downside, base and upside cases on the Inputs tab and switch the whole model with one cell.35 minMembers
  2. Sensitivity tablesFlex the drivers that matter in one- and two-way tables built with mixed references, and read which lever moves the answer most.35 minFree
  3. Reviewing a modelAudit a colleague's three-statement model: find the hard-code, the broken reference, the sign error, the missing link and the faulty check — and fix them.40 minMembers