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.
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.
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.)