Integrating Financial Statements

Excel file available for free at www.ASimpleModel.com. This is the first instructional video in the “Integrating Financial Statements” series. The video will guide you through the process of using two years of historical income statement data and balance sheet data to build a fully integrated model. In my opinion this is the most important thing to understand if you want to build a strong model building skill-set.
Overview of ASM Financial Modeling Courses:
www.asimplemodel.com/curriculum
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[@bradhapa]

Nicely done!

[@sneha9230]

Thanks a lot.. 😍😍😍

[@eugenesheely5288]

Thanks for posting brother.

[@davidwebb9767]

Love the comment at 1:14 "monotone robot" ...

[@llisasukeill]

Thanks a lot for the amazing video... I'm currently building financial module but it's more complicate than yours. However, to learn how basic module works will help me a lot in my work. thanks again..

[@ASimpleModel]

+mohammed omar Thanks for the comment! It's great to hear that the material is being used in that capacity.

[@llisasukeill]

A Simple Model used & shared 😉

[@nickphillips2213]

Great video.
Although I advise you list the chapters in the description with time stamps so that people can easily fast-track to the information they need.

[@ASimpleModel]

Thanks Nick! Appreciate the feedback. We have chapter selection available at ASimpleModel.com ( www.asimplemodel.com/model/14/integrating-financial-statements/three-statement-model-part-i/ ). You can click on any of the chapters just below the video player on the right-hand side.

[@Liii01001]

This is a great video, and I downloaded the model from your website to practice. As I followed along step-by-step, I had trouble with the interest expense circularity. When I link the IS interest expense line to D128, it returns 0 instead of the 415 because of the circular referencing. I watched your "Broken Model & Circular Referencing" video to fix the issue, but the on/off toggle did not work either. The linked cells still only return 0. I had to hardcode the interest expense projections in order for all the other formulas in the model to flow through.

[@rodneyphillips1320]

I had the same issue. You need to first turn on 'Enable iterative calculation'. This allows excel to run through X number of times through the circular referencing to spit out the final result. Then you link the interest expense. The toggle fix is only good once you have iterative calculation turned on.

[@bf7840]

Great Video!! How did you get your reference balance sheet and income statement into excel?

[@ASimpleModel]

Thank you! For a public company there are tools that you can use to pull information from SEC filings into Excel (or you can do this manually). For private companies, and on a real transaction, the data would pull from the company's systems, and it would export to Excel. If you were working internally you might be pulling this data yourself, if you are evaluating a private opportunity as a third party or investor this information would be sent to you by the management team or investment bankers involved. In this particular case I created fictional data for the purpose of the exercise and manually typed it in :) Hope that helps!

[@novellez]

from where can i get this model ??

[@saifulisfree]

Why do you add the long term debt in free cash flow from financing activities section before the revolver? wouldn't that debt just be used to as free cash flow to pay down itself?

[@ASimpleModel]

The purpose of this step is to reduce cash available by the amount of long-term debt repaid (amortized) in that period. (The model is not raising cash via debt, but repaying outstanding balances). For more detail on revolvers / cash sweeps / debt schedules please visit the following series: www.asimplemodel.com/model/4/leveraged-buyout-model/

[@DMaTTh32]

Thanks for the video. Quick question. When building the PP&E Schedule, I thought you have to add Capital Expenditures to Gross PP&E, not Net PP&E. Let me know what you think, thanks!

[@ASimpleModel]

Dustin Matthiessen Thanks for watching! You could certainly take that approach: If you were to add CapEx to Gross PP&E you would then subtract accumulated depreciation from the sum to arrive at Net PP&E for the period. Same end result, just a matter of presentation. The schedule in the model is a basic introduction. Hope that's helpful. Feel free to email if you have any other questions: [e-mail]

[@jakecorreira6435]

I don't think this guy owns a mouse. Great vid though!

[@ASimpleModel]

Thanks! I have a series that attempts to teach mouseless Excel (should you be curious): www.asimplemodel.com/model/6/excel-for-models/

[@jaromejordan7943]

Fellow finance nerds 🤣