3 Statement Financial Modelling

The course will teach attendees how to build a three statement financial forecasting model from scratch.  At the end of this course, attendees will know how to gather information from a variety of sources to create an effective financial model to assist in planning, budgeting and making optimal business decisions. 

Over the day attendees will work using a true to life dataset.  Starting from a blank Excel spreadsheet, attendees will create a full set of forecast financial statements and a comprehensive financial model for their business which is pliable, sustainable and repeatable.

3 Statement Model in Excel

The Income Statement
  • Starting to forecast the P&L from key assumptions.
  • Key drivers for modeling.
  • Key ratios driving the forecast.
  • Drivers on revenues.
  • Drivers on costs.
  • Sources of data.
Completing the balance sheet
  • Drivers for balance sheet items.
  • Which creditors can we stretch, and by how much?
  • Forecasting the balance sheet.
  • Impacts on cash flow.
  • Is growth good?
  • Linking to other statements.
  • Balancing the balance sheet.
Cash flow
  • Modeling the cash flow statement.
  • Key linkages to other statements.
  • Balancing the cash flow statement.

The course considers how business change might incorporated in company analysis and includes detailed coverage of Excel functions that are both essential in financial modeling.  Attendees can then choose a modeling scenario to see how the business performs under stress and, for example, how changing key financial measures change with affect the business.

It would be most helpful if participants bring a USB to class so they can take the file with them upon completion.