Are you confused about
Financial Modeling
Concepts?
Here is a small presentation on
Top 12 Financial Modeling
Concept Checkers!!!
• Hard-coded valuesBlue
• CalculationBlack
• LinkingGreen
Ratios
Often more informative as they show trend.
Puts numbers in perspective with other numbers
Helps control for differe...
Solvency Ratios
Operating Efficiency
Ratios
Risk Analysis
Analysts practice these ratios to determine the
firm’s ability t...
4. BASE Rule
BASE rule is an acronym for Beginning, Additions, Subtractions, Ending.
Beginning + Additions – Subtractions ...
5. Sustainable Growth Rate
It measures how a firm can grow, without
having additional equity and funds.
Sustainable Growth...
6. Financial Projections and Analysis
 In Forecasting, the important things are assumptions which are also
called as Driv...
So forecasting of financial
statements is done by preparing:
7. Revenue Buildup Schedule
8. Cost Sheet
9. Working Capital ...
Knowledge is like a line
with no ends…
To know in detail about this article
click on the link below:
http://www.educorpora...
https://www.facebook.com/CorporateBridgeGroup
Be a part of edu CBA Family!!!
Visit our website
For Free Resources
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Top 12 financial modeling concept checkers

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For full text article go to : https://www.educba.com/top-12-financial-modeling-concept-checkers/ Are you doing Financial Modeling? Here are top 12 financial modeling concept checkers which will give you clarity on various financial modeling concepts. What you need to know is: a. Knowledge about the purpose and audience. b.Identification of key drivers in the financial business. c. Knowledge of accounting and financial statement analysis.

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Top 12 financial modeling concept checkers

  1. 1. Are you confused about Financial Modeling Concepts?
  2. 2. Here is a small presentation on Top 12 Financial Modeling Concept Checkers!!!
  3. 3. • Hard-coded valuesBlue • CalculationBlack • LinkingGreen
  4. 4. Ratios Often more informative as they show trend. Puts numbers in perspective with other numbers Helps control for different sizes of firms Relationships between values in the financial statements 2. Ratio Analysis
  5. 5. Solvency Ratios Operating Efficiency Ratios Risk Analysis Analysts practice these ratios to determine the firm’s ability to pay its short-term liabilities. Examines how management uses its assets to generate sales and it considers the relationship between various asset categories and sales. Risk analysis examines the uncertainty of income for the firm and for an investor. 3.Important Ratios
  6. 6. 4. BASE Rule BASE rule is an acronym for Beginning, Additions, Subtractions, Ending. Beginning + Additions – Subtractions = Closing Balance B: Beginning Add: A: Additions Less: S:Subtractions Closing E: Ending B: Beginning Add: A: Additions Less: S:Subtractions Closing E: Ending FY 07 FY 08
  7. 7. 5. Sustainable Growth Rate It measures how a firm can grow, without having additional equity and funds. Sustainable Growth Rate (SGR) = Retention Rate * Return On Equity (RR) (ROE)
  8. 8. 6. Financial Projections and Analysis  In Forecasting, the important things are assumptions which are also called as Drivers.  In Financial Modeling we have to create different independent Schedules like Revenue Buildup Schedule, Depreciation Schedule, Shareholders Equity Schedule, Debt Schedule.  Through creation of different schedules we get, easy access to projected information which is required for linking in other places.  Based on Key Ratios, benchmarking of projections can be done.
  9. 9. So forecasting of financial statements is done by preparing: 7. Revenue Buildup Schedule 8. Cost Sheet 9. Working Capital Schedule 10.Depreciation Schedule 11.Amortization Schedule 12.Shareholder’s Equity Schedule & Debt Schedule
  10. 10. Knowledge is like a line with no ends… To know in detail about this article click on the link below: http://www.educorporatebridge.com/financial- modeling/top-12-financial-modeling-concept- checkers/
  11. 11. https://www.facebook.com/CorporateBridgeGroup Be a part of edu CBA Family!!! Visit our website For Free Resources Like us on Facebook Follow us on Twitter https://www.educorporatebridge.com/ https://www.educorporatebridge.com/free-courses/ https://twitter.com/corporatebridge
  12. 12. Thank You!!! If you have found this Presentation to be useful, kindly Like Share Follow us!!! +

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