NOTE: This project is purely to apply concepts that I have learned from courses and certifications completed and not a formal, independent analyst opinion of any kind.
Find the model here. Any feedback is welcome. Noted cash flow doesn’t balance, refer below. Revisited in V2.
Overview
This model came about as a simple application of learnings from Corporate Finance Institute’s Introduction to 3 Statement Modeling unit.
Please note this does not utilise a life of mine model, I’m either using growth rates and ratios based on historical financials or making up certain assumptions to have numbers to play with.
- This was my first three statement model. I tried to be a bit clever with some parts of it and got the end and couldn’t balance it. I decided to take the L and get it right on the next one.
- I later realised I was double counting depreciation in the cash flow reconciliation. Rectified in later models prepared.
Takeaways:
- I initially tried to prepare this model using only the main statements and realised quite quickly that the detailed notes are important for projecting line items more accurately.
- As noted, this was the first three statement model I prepared. It is quite messy and I have since simplified and improved the way I set it out in models going forward.