How to Build a Dynamic 3 Statement Financial Model in Excel from Scratch

► 3 Statement Financial Model Template Download:

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In this video, you will learn how to build a 3 statement financial model in Excel, which includes an integrated Income Statement, Balance Sheet, and Cash Flow Statement - with a balance sheet that balances!

Also included is a link (in the "resources & links" section) where you can download the 3-statement financial model Excel template.

In order to successfully build these types of models, you need to really understand that the models represent the operations of a company. And if you know the operations and construction of these models, you will be better at building them, and better at fixing them.

Here is a brief explanation of each one.

Income Statement:
The income statement shows the amount of revenue a business generates from providing a service, and the expenses associated with the service, over a window of time. This is why the income statement is considered a flow statement - it summarizes income flows over time. This statement, however, doesn't tell us anything about the capital structure of a company (debt, equity, assets purchases, etc).

Balance Sheet:
While the income statement shows us what happened during a period of time, the balance sheet can only show us one precise moment. The balance sheet shows us exactly what a company owns, and owes, on a specific date. But what happens to what we owe / own over periods of time? The balance sheet cannot tell us anything about that.

Cash Flow Statement:
The cash flow statement is a flow statement, similar to the income statement. However, while the income statement is showing us revenues and related costs, the cash flow statement is simply converting the balance sheet into a flow statement by calculating the changes in what we owe / own (on the BS). The cash flow statement doesn't care about what services we provide, it only tracks where the dollars go. Things like debt repayment and changes in working capital show up on the cash flow statement, but not on the income statement.

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Chapters:
- Building Inputs at the Dashboard (0:34)
- Revenue & COGS Calculations (6:19)
- Creating OPEX Forecast (8:35)
- CAPEX Calculations (12:03)
- Capital Forecasting (13:00)
- Building Cash Flow Statement (16:13)
- Creating Balance Sheet (19:52)
- Financial Statements Summary (23:55)
- Dashboard Core Outputs & KPIs (28:11)
- Creating Dynamic Charts (33:30)

[omaromarvv]

Hello, I hope you're doing well. Could you please send me the file? I'm having trouble downloading it, and I would really appreciate your help. As a business administration student, this file would be very helpful for my studies

[sangitadas.]

I have learned a lot from you. The model is simple and elaborate and resourceful for projections.

[tevyeliazaar]

Hi Henry,
Just finished watching this content. Appreciate very much for sharing your insightful video content. You have done a great job in developing many industries' financial model. But, I guess this free model template is no longer available.

[sangitadas.]

very informative video really upwork sir

[alexryzhkov]

Thank you! I have learned a lot from you. The model is simple and elaborate and resourceful for projections. Your work is great

[Mad]

Thanks a lot for the wonderful video and explanation.

Please allows us to download the file for better practice.

[gwyndewin]

Thanks, very informative video it was really helpful

[benjaminrondonneto]

Congrats on the class. Could you recommend any book to support the financial concepts used in this video?

[dillonpereira]

Hi, The model is amazing. Very user friendly and accurate. I was working on the same but I wanted to know how to add further debt in various months via drop down. Not able to do that. (Say for example, I have a debt in Jan, another in Mar, july etc. and at diff periods and interest). Is it possible in the formula you have given OR should I create a separate working sheet and just link the same in the capital sheet.
Also, where do I add other mthly recurring income (based on other parameters) which is not linked to per unit.

[rearer]

Where is the link to the template. Thanks for sharing

[SajalGaming]

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