This document provides an overview of financial modeling for investment banking and private equity. It discusses spreading historical financial statements, deriving historic ratios and trends, projecting financial statements, and integrating projections. Key steps include adjusting historic income statements, calculating important ratios from the past, projecting revenue based on growth or market factors, estimating expenses as percentages of revenue or costs, and ensuring balance sheet and cash flow projections reconcile. Maintaining a simple and clearly formatted model is emphasized.
The document discusses financial planning and analysis (FP&A), which involves reporting results, forecasting, budgeting, and analysis to help a company meet its strategic goals, with the main approaches being top-down, which is quicker but less granular, and bottom-up, which is more time-consuming but provides a basis for financial modeling and variance analysis. Common problems to avoid with forecasts include not revising them frequently enough, compensating managers solely on meeting the budget, having forecasts become an end in themselves rather than a tool, and using bad comparators that don't accurately reflect business changes.
This document provides an introduction to financial modeling. It defines financial modeling as creating a model that answers key questions about the potential size, growth and requirements of a business. It discusses two common methodologies for financial modeling - top-down modeling based on market share assumptions, and bottom-up modeling based on measurable inputs like customer acquisition costs, churn rates and customer lifetime value. The document provides examples of calculations that can be included in a financial model to project metrics like revenue, expenses, profits and customer counts. It recommends setting up standard tabs in an Excel model for inputs, market factors, revenue, staffing, costs, capital expenditures, debt and summary financials.
This document provides an overview of finance and key concepts. It discusses what finance is, the functions and areas of finance, and compares finance to accounting. It also outlines the goals of business as maximizing shareholder wealth. The document reviews types of businesses including sole proprietorships, partnerships, and companies. It then discusses the modern corporation's separation of owners and managers. Finally, it provides a brief tour of the financial environment, including financial markets, flows of funds, types of markets, and influences on expected security returns such as risk.
This document discusses financial strategy and objectives for a new business venture. It explains that a financial strategy should answer questions about startup costs, ongoing operating costs, capital needs, and sources of funding. The key components of a financial strategy are identified as sales forecasts, expenses, profits, balance sheets, cash flow projections, and repayment plans. The document also outlines the financial planning process and defines important financial terms like breakeven point, market share, profit margin, return on investment, and the difference between startup costs and operating expenses.
This document discusses various techniques for financial forecasting and projections. It provides an overview of preparing pro forma income statements and balance sheets using percentage of sales and budgeted expense methods. An example pro forma income statement and assumptions are presented. Key points covered are sales forecasting techniques, calculating external funding requirements for growth, and preparing other supporting financial projections like cash budgets and operating budgets.
The document outlines an agenda for a startup leadership program on financial modeling. It includes presentations on what a financial model is, how to build an income statement, balance sheet, and cash flow statement. It discusses how financial models are useful for entrepreneurs and startups by providing an analytical lens, operating roadmap, risk assessment, scenario exploration, and as a pitch tool for investors. The document also covers best practices for model construction and common business metrics and economic indicators analyzed in financial models.
Cash flow is the flow of money in and out of the business. Managing your cash flow is vital for business survival and growth, even if you have existing cost savings programs in your organization.
The impact of disasters such as COVID-19 has driven the global economy into a recession and many businesses are only just trying to survive. Before taking drastic actions such as cutting salaries and staff, you might want to review your current cash flow performance to stem unnecessary cash outflow and eliminate waste in your processes.
To run your business effectively, you need to balance the timing and amount of your expenses with those of your income. This training presentation explains the various areas you need to consider when managing and improving cash flow in your business.
LEARNING OBJECTIVES:
1. Explain what cash flow means
2. Understand the cash flow cycle and importance of cash flow to a business
3. Identify major causes of cash flow problems
4. Define strategies to improve cash flow
5. Gain knowledge on eliminating waste to improve cash flow
6. Learn how to forecast cash flow
CONTENTS:
1. Introduction to cash flow
2. Causes of cash flow problems
3. Strategies to improve cash flow
4. Improving cash flow through waste elimination
5. Cash flow forecasting
To download this complete presentation, please visit: http://www.oeconsulting.com.sg
This document discusses financial statement analysis and its importance. It covers key topics like the difference between an annual report and financial statements, tools for financial statement analysis including ratio analysis, horizontal analysis, and vertical analysis. Ratio analysis can evaluate a company's liquidity, asset management, debt management, profitability, and market value. The document also includes an example of fundamental analysis using financial ratios to evaluate a company. In summary, financial statement analysis is used to assess a company's financial health, make investment decisions, and plan for the future.
The document discusses financial planning and analysis (FP&A), which involves reporting results, forecasting, budgeting, and analysis to help a company meet its strategic goals, with the main approaches being top-down, which is quicker but less granular, and bottom-up, which is more time-consuming but provides a basis for financial modeling and variance analysis. Common problems to avoid with forecasts include not revising them frequently enough, compensating managers solely on meeting the budget, having forecasts become an end in themselves rather than a tool, and using bad comparators that don't accurately reflect business changes.
This document provides an introduction to financial modeling. It defines financial modeling as creating a model that answers key questions about the potential size, growth and requirements of a business. It discusses two common methodologies for financial modeling - top-down modeling based on market share assumptions, and bottom-up modeling based on measurable inputs like customer acquisition costs, churn rates and customer lifetime value. The document provides examples of calculations that can be included in a financial model to project metrics like revenue, expenses, profits and customer counts. It recommends setting up standard tabs in an Excel model for inputs, market factors, revenue, staffing, costs, capital expenditures, debt and summary financials.
This document provides an overview of finance and key concepts. It discusses what finance is, the functions and areas of finance, and compares finance to accounting. It also outlines the goals of business as maximizing shareholder wealth. The document reviews types of businesses including sole proprietorships, partnerships, and companies. It then discusses the modern corporation's separation of owners and managers. Finally, it provides a brief tour of the financial environment, including financial markets, flows of funds, types of markets, and influences on expected security returns such as risk.
This document discusses financial strategy and objectives for a new business venture. It explains that a financial strategy should answer questions about startup costs, ongoing operating costs, capital needs, and sources of funding. The key components of a financial strategy are identified as sales forecasts, expenses, profits, balance sheets, cash flow projections, and repayment plans. The document also outlines the financial planning process and defines important financial terms like breakeven point, market share, profit margin, return on investment, and the difference between startup costs and operating expenses.
This document discusses various techniques for financial forecasting and projections. It provides an overview of preparing pro forma income statements and balance sheets using percentage of sales and budgeted expense methods. An example pro forma income statement and assumptions are presented. Key points covered are sales forecasting techniques, calculating external funding requirements for growth, and preparing other supporting financial projections like cash budgets and operating budgets.
The document outlines an agenda for a startup leadership program on financial modeling. It includes presentations on what a financial model is, how to build an income statement, balance sheet, and cash flow statement. It discusses how financial models are useful for entrepreneurs and startups by providing an analytical lens, operating roadmap, risk assessment, scenario exploration, and as a pitch tool for investors. The document also covers best practices for model construction and common business metrics and economic indicators analyzed in financial models.
Cash flow is the flow of money in and out of the business. Managing your cash flow is vital for business survival and growth, even if you have existing cost savings programs in your organization.
The impact of disasters such as COVID-19 has driven the global economy into a recession and many businesses are only just trying to survive. Before taking drastic actions such as cutting salaries and staff, you might want to review your current cash flow performance to stem unnecessary cash outflow and eliminate waste in your processes.
To run your business effectively, you need to balance the timing and amount of your expenses with those of your income. This training presentation explains the various areas you need to consider when managing and improving cash flow in your business.
LEARNING OBJECTIVES:
1. Explain what cash flow means
2. Understand the cash flow cycle and importance of cash flow to a business
3. Identify major causes of cash flow problems
4. Define strategies to improve cash flow
5. Gain knowledge on eliminating waste to improve cash flow
6. Learn how to forecast cash flow
CONTENTS:
1. Introduction to cash flow
2. Causes of cash flow problems
3. Strategies to improve cash flow
4. Improving cash flow through waste elimination
5. Cash flow forecasting
To download this complete presentation, please visit: http://www.oeconsulting.com.sg
This document discusses financial statement analysis and its importance. It covers key topics like the difference between an annual report and financial statements, tools for financial statement analysis including ratio analysis, horizontal analysis, and vertical analysis. Ratio analysis can evaluate a company's liquidity, asset management, debt management, profitability, and market value. The document also includes an example of fundamental analysis using financial ratios to evaluate a company. In summary, financial statement analysis is used to assess a company's financial health, make investment decisions, and plan for the future.
This slide set is a work in progress and is embedded in my Principles of Finance course that I teach to computer scientists and engineers.
http://awesome.weebly.com/
Finance involves managing money and making decisions about assets and investments. It includes financial management, capital markets, and investments. Financial management involves acquiring funds, investment decisions about long-term projects, capital structure decisions about debt vs equity, dividend payout policies, and working capital management. Capital markets determine interest rates and prices of stocks and bonds. Investments analyze individual securities, construct portfolios, and evaluate market conditions. The finance function involves procuring funds and allocating them optimally through investment, financing, dividend, and working capital decisions. These decisions balance the interests of stakeholders under uncertainty.
Chapter 18 long term financial planninghina qureshi
This document outlines topics related to financial planning. It discusses what financial planning is, including focusing on the big picture and considering alternative scenarios. It also explains why financial plans are built and how they allow managers to evaluate options and ensure goals are consistent. The document then describes common components of financial planning models, including inputs, the planning model, and outputs. It provides an example of a percentage of sales model and how it can be improved. Potential pitfalls of models are outlined. Finally, the document discusses relationships between growth, investment, and financing goals and how external financing relates to growth.
The document analyzes the business and financial performance of Panasonic and Sony over the period of 2008 to 2011. It includes sections on information gathering, accounting techniques used, and an analysis of the companies' financial performance based on ratios calculated from income statements, balance sheets, and cash flow statements. Key metrics examined include profitability, asset utilization, working capital, debt levels, and changes in owners' equity. The analysis provides a comparison of the financial positions and performance trends of the two electronics companies over the three-year period.
The document discusses various financial ratios that can be used to analyze a company's financial health and performance. It covers liquidity ratios, activity ratios, debt ratios, and profitability ratios. It also describes the DuPont analysis approach, which integrates ratios to determine key measures of profitability and return on assets and equity.
This document discusses financial statement analysis. It defines financial statement analysis as evaluating financial statements to understand a firm's operations and make decisions. The document outlines various tools for financial statement analysis, including comparative statements, common size statements, trend analysis, ratio analysis, cash flow analysis, and fund flow analysis. It also describes different types of ratios used in analysis, such as liquidity, leverage, profitability, and market test ratios.
The study analyzed the impact of working capital management on the profitability of 58 small manufacturing firms in Mauritius over the period of 1998-2003. The results showed that return on total assets, a measure of profitability, was positively correlated with measures of working capital management efficiency like accounts receivable days and cash conversion cycle. However, it was negatively correlated with accounts payable days. The paper concluded that synchronizing current assets and liabilities is important for small firm profitability and the paper industry showed best practices in working capital management.
This document provides an introduction and overview of a financial modeling and valuation course presented by Ankur Kapur. The summary includes:
1. Ankur Kapur is an experienced finance instructor who will teach the course and has trained over 500 students globally.
2. The course will provide an introduction to financial modeling and advanced valuation techniques over 21 hours of live online sessions.
3. Students will learn how to calculate beta and cost of equity, conduct financial statement analysis, and build discounted cash flow models.
4. The course benefits include enhancing valuation skills and analytical abilities for finance careers.
This document outlines the requirements and guidance for a first-time adopter of International Financial Reporting Standards (IFRS) as provided in IFRS 1. It discusses the objective, scope, definitions, recognition and measurement principles, mandatory exceptions and optional exemptions to retrospective application that a first-time adopter must consider. It also provides examples of the phased transition approach to IFRS adoption in Ethiopia, including transition dates and timelines for different entities.
The document provides an overview of consolidated financial statements. It discusses how a parent company combines the financial statements of its subsidiaries by eliminating reciprocal accounts and adjusting for the difference between the parent's cost of its investment and the book value of the subsidiary's underlying equity. The objectives covered include recognizing the benefits of consolidated statements, requirements for inclusion of subsidiaries, allocating excess investment costs, preparing consolidated balance sheets at acquisition and subsequent periods, accounting for minority interests, and preparing consolidated income statements.
For full text article go to : https://www.educorporatebridge.com/financial-modeling/financial-modeling-technique/ This Financial Modeling Technique will help you to understand some important techniques like color coding, circular reference, compilation of historical data, things needs to be considered before making an assumption etc in order to make a financial model easy to understand.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
Understand the nature and importance of investment decisions.
Distinguish between discounted cash flow (DCF) and non-discounted cash flow (non-DCF) techniques of investment evaluation.
Explain the methods of calculating net present value (NPV) and internal rate of return (IRR).
Show the implications of net present value (NPV) and internal rate of return (IRR).
Describe the non-DCF evaluation criteria: payback and accounting rate of return and discuss the reasons for their popularity in practice and their pitfalls.
Illustrate the computation of the discounted payback.
Describe the merits and demerits of the DCF and Non-DCF investment criteria.
Compare and contract NPV and IRR and emphasise the superiority of NPV rule.
The effective date for IFRS 17 is now 2021. The new effective date will mean companies could start planning for the change in 2018 as part of being ready for the new standard by 2021.
The document discusses key accounting concepts and standards. It covers the accounting equation of assets equaling liabilities plus owner's equity. It defines assets, liabilities and owner's equity. It also discusses the types of financial statements including the income statement, balance sheet, cash flow statement, and statement of changes in equity. Finally, it provides an overview of accounting standards used internationally such as GAAP, IFRS, and standards used in countries like the UK, Germany, France, China and Russia.
Financial statement analysis involves analyzing a company's financial statements to assess its performance and financial position. It is used to evaluate factors like profitability, solvency, liquidity, and efficiency. Key tools for financial statement analysis include financial ratios, common size analysis, trend analysis, and comparisons to industry standards and past performance. The purpose is to provide useful information to decision makers about a company's historical performance, current condition, and future prospects.
This document discusses financial statement analysis, which involves reviewing a company's financial statements like the income statement, balance sheet, and cash flow statement to assess the company's financial health and performance over time and relative to other companies. Key aspects of financial analysis include evaluating profitability, solvency, liquidity, and stability using tools like ratio analysis, comparative statements, common size statements, and trend analysis. The results of financial analysis are used by various interested parties like management, investors, and creditors to evaluate financial performance, position, operating efficiency, and predict future performance.
This document outlines what constitutes Financial Analysis to study a company's Balance Sheet, Profit and Loss accounts, Cash Flow Statements. It also provides guidance to do Ratio Analysis.
The CAMELS rating system is used by US regulators to evaluate the overall condition of banks based on their Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk. It rates banks on a scale of 1 to 5 based on an analysis of their financial statements and on-site examinations, with 1 being the strongest. The ratings are used to determine a bank's stability and identify weaknesses as well as allocate supervisory resources.
Financial modeling is a necessary tool that allows companies to forecast their future financial performance. It is based on making assumptions about key factors like revenues, costs, growth rates, and debt levels. These assumptions are then integrated into financial statements like income statements and cash flows to analyze how changes might impact the company. Financial models are useful for planning, financing needs, analyzing major changes, and new ventures. Experts can create customized models for any industry that clients can interact with to test different scenarios and assumptions.
The document focuses on a company's budgeted income statement, capital expenditures, and cash position and balance sheet. It includes charts projecting increases in gross margin, operating margin, and net margin percentages each year from 2011 to 2020.
This slide set is a work in progress and is embedded in my Principles of Finance course that I teach to computer scientists and engineers.
http://awesome.weebly.com/
Finance involves managing money and making decisions about assets and investments. It includes financial management, capital markets, and investments. Financial management involves acquiring funds, investment decisions about long-term projects, capital structure decisions about debt vs equity, dividend payout policies, and working capital management. Capital markets determine interest rates and prices of stocks and bonds. Investments analyze individual securities, construct portfolios, and evaluate market conditions. The finance function involves procuring funds and allocating them optimally through investment, financing, dividend, and working capital decisions. These decisions balance the interests of stakeholders under uncertainty.
Chapter 18 long term financial planninghina qureshi
This document outlines topics related to financial planning. It discusses what financial planning is, including focusing on the big picture and considering alternative scenarios. It also explains why financial plans are built and how they allow managers to evaluate options and ensure goals are consistent. The document then describes common components of financial planning models, including inputs, the planning model, and outputs. It provides an example of a percentage of sales model and how it can be improved. Potential pitfalls of models are outlined. Finally, the document discusses relationships between growth, investment, and financing goals and how external financing relates to growth.
The document analyzes the business and financial performance of Panasonic and Sony over the period of 2008 to 2011. It includes sections on information gathering, accounting techniques used, and an analysis of the companies' financial performance based on ratios calculated from income statements, balance sheets, and cash flow statements. Key metrics examined include profitability, asset utilization, working capital, debt levels, and changes in owners' equity. The analysis provides a comparison of the financial positions and performance trends of the two electronics companies over the three-year period.
The document discusses various financial ratios that can be used to analyze a company's financial health and performance. It covers liquidity ratios, activity ratios, debt ratios, and profitability ratios. It also describes the DuPont analysis approach, which integrates ratios to determine key measures of profitability and return on assets and equity.
This document discusses financial statement analysis. It defines financial statement analysis as evaluating financial statements to understand a firm's operations and make decisions. The document outlines various tools for financial statement analysis, including comparative statements, common size statements, trend analysis, ratio analysis, cash flow analysis, and fund flow analysis. It also describes different types of ratios used in analysis, such as liquidity, leverage, profitability, and market test ratios.
The study analyzed the impact of working capital management on the profitability of 58 small manufacturing firms in Mauritius over the period of 1998-2003. The results showed that return on total assets, a measure of profitability, was positively correlated with measures of working capital management efficiency like accounts receivable days and cash conversion cycle. However, it was negatively correlated with accounts payable days. The paper concluded that synchronizing current assets and liabilities is important for small firm profitability and the paper industry showed best practices in working capital management.
This document provides an introduction and overview of a financial modeling and valuation course presented by Ankur Kapur. The summary includes:
1. Ankur Kapur is an experienced finance instructor who will teach the course and has trained over 500 students globally.
2. The course will provide an introduction to financial modeling and advanced valuation techniques over 21 hours of live online sessions.
3. Students will learn how to calculate beta and cost of equity, conduct financial statement analysis, and build discounted cash flow models.
4. The course benefits include enhancing valuation skills and analytical abilities for finance careers.
This document outlines the requirements and guidance for a first-time adopter of International Financial Reporting Standards (IFRS) as provided in IFRS 1. It discusses the objective, scope, definitions, recognition and measurement principles, mandatory exceptions and optional exemptions to retrospective application that a first-time adopter must consider. It also provides examples of the phased transition approach to IFRS adoption in Ethiopia, including transition dates and timelines for different entities.
The document provides an overview of consolidated financial statements. It discusses how a parent company combines the financial statements of its subsidiaries by eliminating reciprocal accounts and adjusting for the difference between the parent's cost of its investment and the book value of the subsidiary's underlying equity. The objectives covered include recognizing the benefits of consolidated statements, requirements for inclusion of subsidiaries, allocating excess investment costs, preparing consolidated balance sheets at acquisition and subsequent periods, accounting for minority interests, and preparing consolidated income statements.
For full text article go to : https://www.educorporatebridge.com/financial-modeling/financial-modeling-technique/ This Financial Modeling Technique will help you to understand some important techniques like color coding, circular reference, compilation of historical data, things needs to be considered before making an assumption etc in order to make a financial model easy to understand.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
Understand the nature and importance of investment decisions.
Distinguish between discounted cash flow (DCF) and non-discounted cash flow (non-DCF) techniques of investment evaluation.
Explain the methods of calculating net present value (NPV) and internal rate of return (IRR).
Show the implications of net present value (NPV) and internal rate of return (IRR).
Describe the non-DCF evaluation criteria: payback and accounting rate of return and discuss the reasons for their popularity in practice and their pitfalls.
Illustrate the computation of the discounted payback.
Describe the merits and demerits of the DCF and Non-DCF investment criteria.
Compare and contract NPV and IRR and emphasise the superiority of NPV rule.
The effective date for IFRS 17 is now 2021. The new effective date will mean companies could start planning for the change in 2018 as part of being ready for the new standard by 2021.
The document discusses key accounting concepts and standards. It covers the accounting equation of assets equaling liabilities plus owner's equity. It defines assets, liabilities and owner's equity. It also discusses the types of financial statements including the income statement, balance sheet, cash flow statement, and statement of changes in equity. Finally, it provides an overview of accounting standards used internationally such as GAAP, IFRS, and standards used in countries like the UK, Germany, France, China and Russia.
Financial statement analysis involves analyzing a company's financial statements to assess its performance and financial position. It is used to evaluate factors like profitability, solvency, liquidity, and efficiency. Key tools for financial statement analysis include financial ratios, common size analysis, trend analysis, and comparisons to industry standards and past performance. The purpose is to provide useful information to decision makers about a company's historical performance, current condition, and future prospects.
This document discusses financial statement analysis, which involves reviewing a company's financial statements like the income statement, balance sheet, and cash flow statement to assess the company's financial health and performance over time and relative to other companies. Key aspects of financial analysis include evaluating profitability, solvency, liquidity, and stability using tools like ratio analysis, comparative statements, common size statements, and trend analysis. The results of financial analysis are used by various interested parties like management, investors, and creditors to evaluate financial performance, position, operating efficiency, and predict future performance.
This document outlines what constitutes Financial Analysis to study a company's Balance Sheet, Profit and Loss accounts, Cash Flow Statements. It also provides guidance to do Ratio Analysis.
The CAMELS rating system is used by US regulators to evaluate the overall condition of banks based on their Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk. It rates banks on a scale of 1 to 5 based on an analysis of their financial statements and on-site examinations, with 1 being the strongest. The ratings are used to determine a bank's stability and identify weaknesses as well as allocate supervisory resources.
Financial modeling is a necessary tool that allows companies to forecast their future financial performance. It is based on making assumptions about key factors like revenues, costs, growth rates, and debt levels. These assumptions are then integrated into financial statements like income statements and cash flows to analyze how changes might impact the company. Financial models are useful for planning, financing needs, analyzing major changes, and new ventures. Experts can create customized models for any industry that clients can interact with to test different scenarios and assumptions.
The document focuses on a company's budgeted income statement, capital expenditures, and cash position and balance sheet. It includes charts projecting increases in gross margin, operating margin, and net margin percentages each year from 2011 to 2020.
Types of Financial Model - Financial Modeling by EduCBAeduCBA
https://www.educorporatebridge.com/financial-modeling/types-of-financial-model/
Learn the different types of Financial model like DCF Model, Comparative Company Analysis model, Sum-of-the-parts model, LBO Model, M&A model and Option Pricing Model
The document outlines 10 golden rules of financial modeling:
1. Start with a conceptual model
2. Document as you build
3. Make assumptions explicit
It emphasizes testing calculations as you build, adding detail gradually, using sensitivity analysis to guide the model development, and aiming for clarity and simplicity in the model. The rules advise embracing unexpected behavior from the model and not trusting any model too much.
#Financial Modeling: Growing needs of financial modeling skills in financial ...13 Llama Interactive
About EduPristine
Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training providers for Finance Certifications like CFA, PRM, FRM, Financial Modeling, Business Analytics etc. EduPristine holds a profound history in training Risk Professionals across the globe. It has been an International Authorized Training provider for FRM & PRM trainings since past 4 years and has helped 250+ FRM aspirants clear the Exam. It is Registered with GARP & CFA Institute as an Approved Provider of Continuing Professional Education (CPE) credits.
http://www.edupristine.com/ca
The Personal Financial Modeling Coaching PLUS Program from REFM offers one-on-one financial modeling coaching to improve Excel skills. The program is led by Bruce Kirsch, editor of a top real estate finance textbook, and includes in-person or online sessions to learn modeling principles and complete exercises. Benefits include improved problem-solving abilities, stronger performance on projects, and increased confidence in advanced analysis. Popular topics cover various REFM certification levels and individual asset or fund modeling. Payment plans and package discounts are available starting at $1,299.
The Value & Economic Measures of Libraries - Economic PerspectiveJoe Matthews
A half-day workshop at the 10th Northumbria International
Library Conference, York England July 25, 2013. Topics discussed include return on investment (ROI), Direct use benefits, indirect use benefits, ROI in libraries, What to do, how to communicate value, and Orr's fundamental questions
Financial Boot Camp for Entrepreneurs - 2016David Chase
The document discusses the importance of cash flow planning and key performance indicators (KPIs) for growing businesses, providing examples of long-term and short-term cash flow forecasts with metrics and financial projections that investors look for to demonstrate a company's ability to achieve its financial goals. It emphasizes having a detailed long-term cash flow projection and a 13-week short-term cash flow forecast with weekly variance analysis to manage liquidity and spot trends.
This presentation provides an understanding of what financial modelling is and how it is used. Moreover it covers the basic approach for creating financial models and utilising them as needed.
This document provides an introduction and overview of a financial modeling and valuation course presented by Ankur Kapur. The summary is:
Ankur Kapur, who has over 12 years of finance experience, will instruct the course. The course will provide an introduction to financial modeling and teach advanced valuation techniques over 16 hours of live online sessions. Students will learn tools like DCF modeling and applications in mergers and acquisitions. The course is intended for professionals in finance, accounting, and business analysis seeking to strengthen their valuation and modeling skills.
This chapter discusses nonlinear programming and evolutionary optimization techniques. It introduces nonlinear programming problems, which have nonlinear objective functions and/or constraints. The Generalized Reduced Gradient (GRG) algorithm is commonly used to solve nonlinear programs and finds local optimal solutions. Global optimal solutions may exist but are difficult to guarantee. Examples discussed include the economic order quantity (EOQ) model, facility location problems, and nonlinear network flow problems.
The document discusses key topics in valuation analysis, including:
1) Two main questions in valuation - what a company is intrinsically worth and what someone will pay for it
2) Challenges in finding "pure comps" or comparable companies due to differences in operations and intangible factors
3) Synergies from M&A deals are often critical to the valuation as they are a key driver of what an acquirer will pay
This document provides an overview of using Excel for finance. It discusses key Excel concepts needed for finance like variables, formulas, and data tables. It explains how to build financial models in Excel to make investment and financing decisions by projecting accounting statements and cash flows. Key parts of a financial model in Excel are assumptions, projected financials, and free cash flow calculations. The document also covers discount rates, net present value, internal rate of return, and other concepts for evaluating strategic alternatives in Excel.
The document provides an overview of formulas and functions in Excel. It discusses creating formulas with cell references and named ranges, using built-in functions like SUM and AVERAGE, and more advanced formulas like 3-D references between worksheets and external references between workbooks. The document also covers how to insert functions, edit existing links between workbooks, and the syntax required for different Excel functions.
DegreeLinked
Challenge & Opportunity: Applying to undergraduate and graduate school is a time-consuming and tedious task. It requires first selecting the right school and then filling out numerous applications including different essays. 75% of prospective students say that they would have applied to more schools if the admissions process were less tedious and time-consuming. DegreeLinked simplifies the university admissions process by standardizing and consolidating it into one singular platform. Connect directly with university admissions representatives, share academic performance and write one application used for all target universities at www.DegreeLinked.com
Key Question: How to Connect Students with University Admissions & Employment Opportunities?
DegreeLinked Methodology:
Provide a networking platform that connects former, current and prospective students with university admissions and employment opportunities. The student marketplace allows universities to run the admissions process through the platform and students get to make one application for all target universities.
This document contains assumptions and financial projections for a bus transportation business over 5 years. It includes assumptions for costs of the bus, maintenance, revenues from fares, operating costs, financing with 75% debt, and projections for income statements, balance sheets, cash flows and other financial metrics. The business is projected to be financially viable with positive net present value and internal rate of return over the 5 year period.
This document provides an overview of firearms examination, including different types of firearms like handguns, revolvers, semi-automatics, rifles, and shotguns. It describes how firearms work and how examiners can identify unique markings on bullets and casings to match them to a specific gun. It also discusses other forensic techniques like analyzing gunshot residue and toolmarks, as well as impressions left by shoes and tires.
1) Currency swaps involve two companies exchanging loans in different currencies so they can each borrow at lower domestic rates rather than higher international rates. For example, a US and Brazilian company arrange for the US company to borrow Brazilian reals from a Brazilian bank at 5% while the Brazilian company borrows dollars from a US bank at 4%.
2) The companies then swap the loans, so the US company receives dollars and pays 5% interest to the Brazilian bank, while the Brazilian company receives reals and pays 4% interest to the US bank. This allows both companies to access lower domestic borrowing rates rather than higher international rates of 9-10%.
3) Currency swaps also involve an exchange of notional principal amounts
Stryker is a medical technologies company focused on Orthopedics, MedSurg, and Neurotechnology & Spine. With $9.68 billion in revenue, stable growth YOY, and numerous strategic acquisitions, Stryker is considered a global market leader. The company's recent acquisition of MAKO Surgical Corp. establishes Stryker as a leader in robotic-arm assisted surgery for joint replacements. Stryker's acquisition strategy and focus on innovative technologies positions it for continued growth in the orthopedic market.
What are the four 4 major financial statements.pdfsarikabangimatam
Financial statements summarize a company's business activities, financial performance, financial position, and cash flows through a series of written reports. All reports should be structured to convey relevant data in an easily digestible manner. Specifically, a cliff note on the financial performance of the Business Accountants. These reports typically provide a snapshot of a specific period of time and typically represent activity over a specific month, year, or specific time period. These financial statements are critical to understanding your business and performance.
The document provides an overview of an income statement and balance sheet for a college course on financial accounting. It includes:
1) Definitions of an income statement as showing a company's revenues, expenses and profits over a period of time, while a balance sheet shows its assets, liabilities and equity at a point in time.
2) Details of line items that appear on an income statement, including revenue, expenses, and depreciation.
3) An explanation of the usefulness but also limitations of information provided in an income statement.
4) A definition of a balance sheet as a summary of a company's financial position through its assets, liabilities and shareholders' equity on a given date.
This document provides an overview of cash flow statements. It begins by explaining what a cash flow statement is and its objectives. A cash flow statement assesses a firm's ability to generate and use cash over a period of time. It shows sources of cash from operations, investments, and financing, as well as uses of cash. The document then discusses the direct and indirect methods for preparing a cash flow statement according to Accounting Standard 3. It also provides examples of cash inflows and outflows from operating, investing, and financing activities.
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Accounting system intro and accounting system of reliance industriesShashank Kapoor
Accounting provides essential financial information to a company in 3 key ways:
1. It allows a company to systematically record, report, and analyze its financial transactions through the accounting process.
2. An accountant oversees the accounting process and ensures compliance with accounting principles and regulations.
3. By analyzing accounting data, a company can evaluate its financial performance through metrics like net profit and make informed business decisions.
Fund flow statement is a statement that compares the two balance sheets by analyzing the sources of funds (debt and equity capital) and the application of funds (assets) and its reasons for any differences.
The document provides information about financial statements, specifically the income statement and cash flow statement. It defines the key components of the income statement, including revenue, costs, expenses, and net income. It also discusses revenue and expense recognition principles. The document outlines non-recurring items and how to analyze income and cash flow statements through vertical and horizontal analysis. Finally, it defines the components of the cash flow statement and provides steps for cash flow statement analysis.
Financial plan and controll entrepreneurshipfatimanajam4
This file is uploaded to help the students learning finance easier. It will give a general understanding of planning and controlling of financial resources.
The free cash flow of XXX AG is expected to increase from €X million to €Y million over the planning period. The main drivers of this increase are expected rises in operative results as well as planned declines in investments. Typically, around X% of EBITDA is available to investors as free cash flow. XXX AG expects to generate a greater degree of cash flows from its operations due to factors such as higher cash conversion rates through optimization of working capital.
Here is a graphical representation of the break even analysis using the data provided:
Units Sold
Fixed costs = $5000
Variable cost per unit = $3
Selling price per unit = $5
Total Costs
$5000
$15000
$25000
Total Revenue
$0
$2500
$5000
$7500
$10000
$12500
$15000
$17500
$20000
$22500
Break Even Point
800 units
The break even point is reached at 800 units where total revenue equals total costs. The total fixed costs line is drawn horizontally at $5000. The total costs line is drawn starting from the total fixed costs line
This document provides an overview of analyzing company finances through interpreting financial statements and calculating key ratios. It discusses developing financial fluency by scanning statements for large numbers, variances, and inconsistencies then focusing on profitability, liquidity, and gearing ratios. Key ratios covered include gross profit, net profit, return on capital employed, current ratio, debt-to-equity, dividend yield, and earnings per share. The document also summarizes budgeting as a short-term business plan and different budgeting approaches like top-down, bottom-up, incremental, and zero-based budgeting.
This document discusses financial statement analysis for credit decisions. It describes the three main financial statements - the balance sheet, income statement, and cash flow statement. It then discusses different types of financial statement analysis including vertical analysis, horizontal analysis, and ratio analysis. Finally, it discusses analyzing a company's ongoing business concern by examining factors like working capital, cash flow, receivables, inventory, and management skills. The overall goal of financial statement analysis is to assess a company's financial health, performance, and ability to repay debts.
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Financial Account group assignment on Financial statement of Golden Agricultureamykua
This document provides an overview and examples of key financial statements including:
1) The balance sheet reports a company's assets, liabilities, and owner's equity at a point in time. It divides assets into current and long-term categories.
2) The income statement reports a company's revenues, expenses, and profits over a period of time. It follows revenue recognition and expense matching principles.
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Role of Financial Statements
Auditors Report
Management Discussion and Analysis
Balance Sheet
Statement of Profit and Loss
Cash Flow statement
Accounting Polices
How to define Assets , Liabilities , Investments , Revenues , Expenses , Taxes, Cash Flow statements
This document provides an overview of topics covered in Accounting Day 2, including:
1. A review of debit and credit concepts through quizzes.
2. An introduction to key financial statements - the income statement reflects profitability, the balance sheet reflects financial position, and the cash flow statement shows cash inflows and outflows.
3. How transactions affect the income statement and balance sheet through accrual-based accounting adjustments.
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This document provides an overview of accounting concepts and financial statements. It begins with definitions of accounting and its purpose. Key terms like assets, liabilities, income, and expenses are explained along with basic accounting equations and methods. Accounting steps from journalizing transactions to preparing trial balances and financial statements are outlined. Financial statements like the income statement, balance sheet, and cash flow statement and their components are defined. Examples of accounting entries, trial balances, and financial statements are provided. The document is an introductory training material on basic accounting concepts, terminology, and financial reporting.
Curriculum Vitae 2021
Finance and Accounts
Finance Analyst
MIS
Budgeting
Revenue Computation and Analysis
Financial Planning and Analysis
Balance Sheet
Cash Flow Statement
Indian Accounting Standard
Business Analysis
This document provides an overview of financial statements for small businesses. It discusses the importance of financial statements for decision making and outlines the key components of the four main financial statements: the income statement, balance sheet, statement of cash flows, and statement of changes in equity. It also defines important financial ratios and terms and provides examples of how small businesses can use financial statements as a management tool.
Okay, let's break this down step-by-step:
* Offer price per share is $48
* Mix is 20% cash, 80% stock
* To calculate the exchange ratio, we take the stock portion as a percentage of the total consideration
* Stock portion is 80% of $48, which is 0.8 * $48 = $38.40
* Cash portion is 20% of $48, which is 0.2 * $48 = $9.60
* Total consideration is $38.40 stock + $9.60 cash = $48
* To get the exchange ratio, we take the stock portion ($38.40) and divide it by the acquirer's stock price.
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2. 2
Table of Contents
I. Introduction
II. Spreading Historical Financial Statements
III. Deriving Historic Ratios, Trends and Variables
IV. Financial Statement Projections
V.
Integration of Financial Statement Projections / Revolver
Modeling
3. 3
Introduction
Uses for Financial Models in Investment Banking and Private Equity:
Models begin with inputting historical results, and then making
projections for future years, linking the income statement, balance
sheet, and cash flow statement
Examples of a model’s use:
– Acquisition or sale of an entire company or division
– Merger of equals
– Leveraged buyouts / Management buyouts
– Public or private placement of new equity or debt capital
– Restructuring / Bankruptcy
The associate or analyst will construct and maintain the model, and
set the model up so that any changes in financial projections or the
deal terms can be quickly entered, and the result seen immediately.
Creating a robust model is imperative.
4. 4
Introduction
Tips for Setting Up the Financial Model:
Keep historic and projected income statement, balance sheet and
cash flow on same worksheet
Have Historic Ratios / Assumptions for Projections on the same
worksheet but separate from the worksheet that has income
statement, balance sheet and cash flow
Formatting is very important in investment banking:
– same font and letter size throughout model
– clearly labeled pages
– blue text usually denotes an input that is a driver
– black text is usually output
– convention is one decimal point for $ amounts; 0 or 1 decimal points for
percentages
– Set print ranges and preferences
– Footnote all sources and assumptions clearly
Keep it as simple as you can
5. 5
Table of Contents
I. Introduction
II. Spreading Historical Financial Statements
III. Deriving Historic Ratios, Trends and Variables
IV. Financial Statement Projections
V.
Integration of Financial Statement Projections / Revolver
Modeling
6. 6
Spreading Historical Financial Statements
3 to 5 year history for income statement, balance sheet and cash flow
usually sufficient
Source of historic financial statements:
Publicly traded companies’ financial statements must be filed with the
SEC on a quarterly (10-Q) and annual basis (10-K) and are publicly
available
Private companies: audited financial statements provided by company
Adjust historical income statement for one-time, extraordinary, non-
recurring items such as restructuring charges or sale of business
division
When spreading the historic financial statements: keep it simple!
7. 7
Deriving Historic Ratios, Trends and Variables
Goal is to intuit historical trends, margins, growth rates for making
projections. Remember that the past is not always a guide to the
future, but sometimes it is.
Important ratios needed for historical results in the income
statement:
Revenue growth
Gross margin: (revenue – cost of goods sold) / revenue
SG&A margin: SG&A / revenue
Operating margin: operating income / revenue
EBITDA margin: (operating income + D&A) / revenue
Operating income growth (AKA EBIT) and EBITDA growth
Depreciation as a percentage of gross P,P&E
Effective tax rate: income tax / pre-tax income
Other income/expense: read the notes to statements to see if there is a trend
– Depreciation schedules can also be used; for purposes of this model, we are
using Depreciation as % of Gross PP&E; Depreciation Schedule available for
illustrative purposes.
8. 8
Deriving Historic Ratios, Trends and Variables
Important ratios needed for historical results in the balance sheet:
Accounts receivable, Inventory, and Accounts Payable are expressed in
terms of number of days (e.g. DSOs are 30 days):
Days in Accounts Receivable: Average A/R Balance / Revenue * 360 days
Days in Inventory: Average Inventory Balance / COGS * 360 days
Days in Payables: Average A/P Balance / COGS * 360 days
• Days in accounts receivable is also called “days in receivables” or “days
sales outstanding” (DSOs)
• Other assets and liabilities can be expressed either as a percent of revenue
or COGS, it all depends on what they are most correlated with
• Capital Expenditures (CAPEX) is expressed as a % of revenue
• Asset Dispositions should be explored in notes to statements, to see if
there is a trend or if they are one-time (non-recurring) items.
9. 9
Table of Contents
I. Introduction
II. Spreading Historical Financial Statements
III. Deriving Historic Ratios, Trends and Variables
IV. Financial Statement Projections
V.
Integration of Financial Statement Projections / Revolver
Modeling
10. 10
Income Statement Projections
Revenue projections are based sometimes on historical growth if a
mature or cyclical company, or more on market intelligence and
judgment if a fast growing company
Revenue = price x quantity. Break them out, maybe you have a good
handle on future unit sales, or price. Does the company have power
to pass through future cost increases? Is the sector expanding
capacity, which may pressure prices?
For a restaurant chain, if average revenue per store were stable, and
we knew the number of new stores they planned to open, we can
project revenue.
COGS projections - what percent of COGS is fixed v. variable? Variable
costs go up in line with their % of unit volume, but fixed costs stay the
same unless capacity is expanded. What are Capex plans? D&A is a
component of COGS.
Break out COGS as detailed as possible. 2/3 of a chemical
manufacturer’s COGS is energy, what is our outlook for natural gas
prices? An aircraft engine maker sources metals, are miners
expanding or shrinking capacity (impacts prices).
11. 11
Income Statement Projections
S,G&A expenses are projected as a % of revenue (e.g. hard key 15%,
then make the expense projection = 15% x projected revenue),
however a portion is a fixed cost and will not increase in line with
revenue.
Interest income and expense are projected based on debt and cash
balance projections. Is there debt coming due, and if/when rolled
over, will rates be higher or lower?
Other income / expense is hard to project unless there is a recurring
trend. If not, project zero.
Income tax expense is projected as a % of pre-tax income, based on
past rates as long as constant. Be mindful of future use of “net
operating loss” (NOL), which reduces tax rates.
12. 12
Balance Sheet Projections - Assets
Cash: this is the one item on the balance sheet that will be linked FROM
the cash flow statement (beg of yr cash + net cash flow = end of yr cash)
Accounts Receivable: in an assumptions sheet, you will hard key DSOs
based on trends, if 30 days, then AR balance will = 30 / 360 * revenue
projection
Same methodology for Inventory and Accounts Payable, except multiply
by COGS projection instead of revenue
Other Assets: discern if there are trends or not, could be hard keyed or
tied as a % of revenue
Goodwill: is not amortized, it sits there unless there is an impairment,
which one cannot project.
Amortization: Financing fees from acquisitions can be amortized, but not
investment banking fees (to be discussed in the LBO section). You can
project this for past expenses, but rarely do you project future
acquisitions, unless maybe if you work in corporate development as an
in-house banker.
13. 13
Balance Sheet Projections – Assets
Property, Plant & Equipment (P,P&E)
Gross P,P&E = beg balance + capex – asset sales
Capex projection: discern historical capex (from cash flow statement) as
% of revenue
Asset sales projection: discern trends, read notes. Often you will project
$0.
Then project depreciation expense (from historical cash flow statement)
as % of gross P,P&E historically.
Add each year’s projected depreciation to the accumulated depreciation
balance.
Net P,P&E = gross – accumulated depreciation.
14. 14
Balance Sheet Projections
Liabilities:
Accounts payable projection, if 40 days in payables = 40 / 360 * COGS
projection
Accrued liabilities and other: discern trends, express either as absolute
hard keyed value, or as % of COGS
Debt: read the debt schedule in the filings, is there debt coming due?
Shareholders’ Equity:
Retained earnings projection = beg balance + net income (after dividends)
Liabilities and Shareholders Equity
15. 15
Cash Flow Projections
All Changes in all Balance Sheet Accounts must be run through the cash
flow; otherwise the balance sheet totals will not balance
All Non-cash items in the income statement must be added back /
deducted from the operating cash flow
Operating Cash Flow = sum of….
Net Income: take from income statement
Depreciation and Amortization: take from income statement
Add back / deduct any other non-cash expenses / income from the income
statement (examples are non-cash interest expense, any non-cash
restructuring charges, amortization of capitalized accounts, etc.)
Changes in working capital
– Current Assets: previous period balance – current period balance
– Current Liabilities: current period balance – previous period balance
Changes in other assets / other liabilities
– Other Assets: previous period balance – current period balance
– Other Liabilities: current period balance – previous period balance
16. 16
Cash Flow Projections
Cash Flow from Investing Activities = sum of….
Capital Expenditures are outflows
Acquisitions are outflows
Sale of Assets are inflows
Cash Flow from Financing Activities
Driven by debt and interest schedule, which integrates the cash and debt
balance sheet accounts, interest expense and interest income on income
statement, and the cash flow statement
An increase in debt or equity is a cash inflow
Ending Cash Balance = Beginning Cash Balance + Cash Flow during Period
17. 17
Debt and Interest Schedule Projections
Create a section just for debt and interest, all tranches
The notes to financial statements contain info on amortization,
maturity, and rates.
Ending debt balance = beg balance + drawdowns – amortization,
paydowns, or maturing debt that is not rolled over
Interest expense projection = average debt balance x interest rate
After projecting each debt tranche in the separate table, link the
beginning and ending balances to the balance sheet
Link the interest expense to the income statement’s interest expense
Link projected interest income to the income statement’s interest
income, because a cash balance earns interest.
18. 18
Table of Contents
I. Introduction
II. Spreading Historical Financial Statements
III. Deriving Historic Ratios, Trends and Variables
IV. Financial Statement Projections
V.
Integration of Financial Statement Projections / Revolver
Modeling
19. 19
Revolver Modeling
The revolver is a short-term bank line that can be drawn on or
paid down daily.
We will learn how to write a formula so that any excess cash flow
will automatically be used to pay down as much of the revolver as
possible, or so that any cash flow deficits will use the revolver to
maintain sufficient working capital for operations.
The following slide is a snapshot of how that will appear in the
model we will create……
20. 20
Revolver Modeling
Cash Flow Before Revolver =
Operating CF + Investing CF +
CF from Change in Term Loan + CF
from Change in Unsecured Debt +
Beg Cash Position
(Paydown)/Drawdown=
-MIN (Cash Flow before Revolver,
Beginning Revolver Balance)
1. If negative cash flow before
revolver, company borrows up to the
amount of its cash flow deficit.
Balance sheet cash is zero after
borrowing.
2. If positive cash flow AND a
revolver balance, company can pay
back the revolver, but ONLY up to
the amount of positive cash flow it
generated.
3. If company has positive cash
flows but NO revolver balance, then
the positive cash flow goes
to balance sheet cash.
Cash Flow
Net Income $23.4 $26.4 $29.4 $32.7 $36.2
Plus / (minus):
Depreciation and Amortization $7 $7 $7 $8 $8
Changes in Working Capital
Accounts Receivable ($0.6) ($0.5) ($0.6) ($0.6) ($0.6)
Inventory ($0.2) ($0.2) ($0.2) ($0.2) ($0.2)
Other Current Assets $0.0 $0.0 $0.0 $0.0 $0.0
Accounts Payable $0.2 $0.2 $0.2 $0.2 $0.2
Accrued Liabilities $0.1 $0.1 $0.1 $0.1 $0.1
Other Current Liabilities $1.3 $0.1 $0.1 $0.1 $0.1
Change in Other Liabilities $0 $0 $0 $0 $0
Cash Flows from Operations $31.3 $33.3 $36.5 $40.0 $43.7
Cash Flows from Investing
Capital Expenditures ($8.8) ($9.3) ($9.7) ($10.2) ($10.7)
Asset Dispositions $0.0 $0.0 $0.0 $0.0 $0.0
Cash Flows from Investing ($8.8) ($9.3) ($9.7) ($10.2) ($10.7)
Cash Flows from Financing
Change in Revolver ($10.6) $0.0 $0.0 $0.0 $0.0
Change in Term Loan ($25.0) ($25.0) ($25.0) ($25.0) ($25.0)
Change in Unsecured Debt $0.0 $0.0 $0.0 $0.0 $0.0
Total Cash Flows from Financing ($35.6) ($25.0) ($25.0) ($25.0) ($25.0)
Total Cash Flow ($13.1) ($0.9) $1.8 $4.8 $8.0
Beginning Cash Position $86.9 $73.7 $72.8 $74.6 $79.4
Change in Cash Position ($13.1) ($0.9) $1.8 $4.8 $8.0
Ending Cash Position $73.7 $72.8 $74.6 $79.4 $87.3
Cash Flow Before Revolver $84.4 $72.8 $74.6 $79.4 $87.3
Debt and Interest Schedule
Revolver
Beginning Revolver Balance $10.6 $0.0 $0.0 $0.0 $0.0
(Paydown) / Drawdown ($10.6) $0.0 $0.0 $0.0 $0.0
Ending Revolver Balance $0.0 $0.0 $0.0 $0.0 $0.0
Interest Rate 6.25% 6.50% 6.75% 7.00% 7.25%
Interest Expense $0.3 $0.0 $0.0 $0.0 $0.0
21. 21
Revolver Modeling
Calculate the interest expense on the revolver as:
interest rate x avg of beginning and ending revolver balance
Link the revolver balance back into the balance sheet, the interest
expense on the revolver back into the income statement, and adjust the
changes in revolver in the cash flow
Once the revolver has been properly modeled, the ending cash balance
should properly calculate in the cash flow, and this can be linked into
the cash balance in the balance sheet