Financial Modeling Fundamentals

FACT SHEET

Modeling and Forecasting

Input historic Build ratios Make future Forecast

data and statistics assumptions financial data
◦ Published ◦ Key links ◦ From history ◦ As needed
◦ Management ◦ Performance drivers ◦ Other inputs ◦ Assignment specific

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Three Statement Modeling and Forecasting
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Historic data Build net debt and

◦ Income statement interest calculations
◦ Balance sheet
◦ Rearrange to suit assignment ◦ Cash available to service debt
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◦ Some "memo" data for back up calculations ◦ Long term debt issuance / (repayment)
◦ Surplus cash / (revolver requirement)
◦ Ending revolver balance
◦ Ending cash balance
Ratios and statistics ◦ Ending long term debt balance
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◦ Interest calculations
◦ Industry specific ◦ Key ratios and statistics
◦ Understand business and performance drivers
◦ Key numbers and relationships
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Build cash flow statement

Forecast assumptions ◦ Back up calculations
◦ Based on historic trends ◦ Operating, investing and financing flows
◦ Check other sources or research as appropriate ◦ Change in assets = inverse cash flow impact
◦ Check the "street" view ◦ Change in liabilities = direct cash flow impact
◦ Link interest into income statement
◦ Key ratios and statistics

Forecast income statement

◦ Back up calculations
◦ Key ratios and statistics Model will be circular
◦ Net income feeds equity on balance sheet ◦ Turn on iterations
◦ Leave interest blank initially ◦ Use a circular reference switch
◦ Turn iteration ON
◦ Turn switch ON

Forecast balance sheet

◦ Back up calculations
◦ Key ratios and statistics
◦ Leave cash, revolver and debt blank initially
◦ Build cash flow statement

© 2022 Financial Edge Training www.fe.training

Financial Modeling Fundamentals
FACT SHEET

Keyboard Shortcuts

Navigation Making Selections

OFFICE SUITE

Jump between open files in any program Alt Tab The “sticky” key Shift

Jump between open files within a program Ctrl Tab Select cell by cell in arrow direction Shift

WITHIN EXCEL Select to the start of the row Shift Home

Select a contiguous block in

One cell move in arrow direction Ctrl Shift
arrow direction

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Move to the left of a row Home Extend selection to top left Ctrl Shift Home

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Screen up or down PgUp PgDn Extend selection to bottom right Ctrl Shift End

Jump a contiguous block in arrow direction Ctrl Extend selection to contiguous area Ctrl A
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Jump to the top left of the sheet Ctrl Home Select entire sheet (twice if in contiguous area) Ctrl A

Previous or next sheet Ctrl PgUp PgDn Select cells referred to by a formula in the active cell Ctrl [
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Screen jump left or right Alt PgUp PgDn Select all cells with formulas referring to the active cell Ctrl ]

Jump to bottom right of filled range Ctrl End Group or ungroup cells Shift Alt
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Copying and Pasting Formatting

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Copy selected cells Ctrl C Bold, italic, underline Ctrl B I U

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Paste current selection Enter Open format cells dialogue box Ctrl 1

Multiple paste of selection Ctrl V Open cell styles Alt H J

Fill left to right or down from above Ctrl R D Open fill color dialogue box Alt H H

PASTE SPECIAL Open font color dialogue box Alt H F C

Paste format, formula,

Ctrl Alt V T F V Access font size field Alt H F S
value

Access font field Alt H F F

Align left, center, right

Nerd Hits
Alt H A L C R

Strikethrough text Ctrl 5

Expand formula bar Ctrl Shift U

Hide or unhide rows Ctrl Shift 9

Toggle absolute reference in formula bar (cursor must be over cell ref) F4
Hide or unhide columns Ctrl Shift 0

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