3 Statement Model Template and Guide

This is a succinct and clear 3 statement model template, with guide, provided by CFI.

by financialmodeling.org
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Description
This is a 3 statement financial model template, accompanied by a step by step method explaining and teaching how to build this type of model.

A 3 statement model is a type of financial model that connects three types of statement; it connects the income statement, the balance sheet, and the cash flow statement. The result of this is a ready-to-use, centralised model. This type of model makes up the basis for more complex financial models, such as DCF models, merger tools, Leveraged Buyout Models (LBO), among others.

With a 3 statement model, one can approach the structure in a multiple ways. CFI, however, recommends the use of a single excel worksheet due to the increased ease of navigation, reduction of risk of formula mis-linking, more organised cell grouping, and it frees up more room for the concretising of multiple businesses.

This ready-to-use, instantly downloadable contains a number of sections, these comprise of:

- Assumptions: Including income statement and balance sheet

- Income Statement: made up of the revenue, gross profit, expenses, earnings before tax, and net earnings.

- Balance Sheet: including Assets, Liabilities, and Shareholder Equity.

- Cash Flow Statement: Operating Cash Flow, Cash from Operations, Cash from Investing, Financing Cash Flow, and Close Cash Balance.

- Supporting Schedules: Working Capital Schedule, Depreciation Schedule, and Debt and Interest Schedule.

- Charts and Graphs

There is also a video to help comprehension of the excel download and methodology. To find more tools from CFI, please visit our channel page.

If you have any questions, please do not hesitate to start a discussion below.

This Best Practice includes
1 Excel Spreadsheet, 1 Youtube Video