From the course: Financial Modeling Foundations

Unlock this course with a free trial

Join today to access over 24,900 courses taught by industry experts.

Linking financial statement models

Linking financial statement models

From the course: Financial Modeling Foundations

Start my 1-month free trial Buy for my team

Linking financial statement models

“

- [Lecturer] Alright, we're just about ready to dive in and start actually building a model. But I wanna do one more thing before we get into Excel and that's lay out the steps that we're gonna follow. So this is gonna be your template for building a three-statement financial model, both in this course and more broadly. So pay attention to what we're doing here and maybe these steps will help you in the future in your professional modeling as well. Alright, so first of all, step number one, we're building the model. We need to gather historical data. You've gotta collect anywhere from three to five years of financial statements, meaning an income statement, balance sheet, and statement of cash flows. And you need to standardize the format. So ensure consistent line items, remove one-offs, adjust for non-recurring items, things like that. So these need to be comparable to one another because they're gonna form the basis…

Contents