Build a Dynamic 3 Statement Financial Model From Scratch
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 Published On Feb 13, 2022

Create a three statement model linking the income statement, balance sheet, and cash flow statement into a dynamic financial model used for valuation (discounted cash flows, M&A models, LBOs etc.) as well as financial analysis (scenario analysis, sensitivity analysis etc.)

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Find the FREE downloadable template of the 3 statement model below:
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This type of financial model is often used as the foundation for more complex models like a discounted cash flow (DCF). Here's the key steps in the process:

1. Firstly, we’ll organize and build our income statement using a set of assumptions
2. Next, we’ll create schedules to model out more complex line items like CapEx and Depreciation)
3. Following that, we’ll build out our balance sheet
4. Lastly build up the cash flow statement and link the 3 statements together

Along the way I'll explain the 3 financial statements and their key line items. I'll also explain the types of assumptions we'll be making to forecast figures for future years. Lastly, we'll learn some financial modelling best practices such as font colors, formulas, and custom formatting.

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Chapters:
0:00​ -​ Intro
1:00​ -​ Formatting the Income Statement
3:01​ - Building the Income Statement
11:06​ - Fixed Assets Schedule
15:42​ - Formatting the Balance Sheet
16:49​ - Building the Balance Sheet
27:05​ - Building the Cash Flow Statement
31:10​ - Linking the 3 Statement Model

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