Integrating Financial Statements
This is possibly the most valuable process you can learn as an aspiring financial analyst. It is the foundation upon which all thorough analysis is built.
This video runs slightly longer than 4 minutes and briefly describes the process of building an integrated financial statement model. It is an easier process to grasp if thought of as a series of steps. Knowing the steps will also provide the benefit of measuring your progress as you watch the longer instructional video and build your own model.
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.
This is a continuation of the previous video. Whereas the first video focused on historical data, the income statement and the balance sheet, in this video we will focus on the cash flow statement and supporting schedules.
Circular references are frequently responsible for crashing financial models. This video will explain how they work, and how to fix your model by focusing on the most common circular reference error found in financial models: the interest expense circularity.
Balancing the balance sheet in a three-statement model can be a frustrating experience. This video will walk through the most common errors made, and how to fix them quickly.
This video introduces a model building exercise. The concept was introduced by a professor at a nearby university who uses ASM to introduce students in his Corporate Finance class to financial models. What follows is a variation of his assignment. It will challenge you to build a model on your own, and think through the variables as you do. (Template available for download.)
In this video we will revisit the three statement model, and begin incorporating additional flexibility with new inputs and scenario options.
This video introduces a more advanced Property Plant & Equipment supporting schedule, which is important as your models increase in complexity. The video also focuses on how to efficiently delete an old supporting schedule and integrate a new one.
In this video we will explore several different options for PP&E schedules. The video also touches on several new topics including the Half-Year Convention and an accelerated depreciation method known as the Sum of the Years' Digits.
This video explains how to update a three statement model to include cash dividends. Two examples are provided.
This video is focused on projecting stockholders' equity for the Home Depot (NYSE: HD).
In this video we explore how an increase in depreciation expense impacts the three financial statements. The notes will explore this same question for a variety of additional topics.