Introduction to 3-Statement Modeling

The three-statement financial model is a foundational model upon which many other types of models and analyses are built. Mastering this model is an absolutely critical skill for many finance and accounting roles. ● How the three core financial statements link together ● Financial model-building best practices ● How to build a financial projection model using a company’s historical data and various assumptions about the future performance of the company

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Overview

Introduction to 3-Statement Modeling Course Overview

The three-statement financial model forms the foundation on which almost all other types of models and analyses are built, and creating one is a crucial skill for many finance professionals. In this course, we will build a three-statement model from scratch and then review and audit it to make sure it’s working properly.

3-Statement Modeling Learning Objectives

Upon completing this course, you will be able to:

How the three core financial statements link together
Financial model-building best practices
How to build a financial projection model using a company’s historical data and various assumptions about the future performance of the company
Finding the right balance between a highly complex model and an overly simplistic one
Thinking about crafting assumptions and various forecasting methods
How to review your model and audit it for potential errors

Who Should Take This Course?

This course is designed for beginner-level investment or commercial bankers, beginner-level equity or credit research analysts, corporate development professionals, and financial planning and analysis (FP&A) professionals.

Courses we recommend you take in advance

These prerequisite courses are optional, but we recommend you complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in this course:

Introduction to 3-Statement Modeling

Led by Jeff Schmidt

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Level 3

Approx 6h to complete

100% online and self-paced

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What you'll learn

Lesson

Multimedia

Exams

Files

3-Statement Modeling

Introduction Free Preview

Downloadable Files

Model Overview Free Preview

Types of Models Free Preview

3-Statement is the Foundation Free Preview

Interactive Exercise 1

Modeling Best Practices

Modeling Structure

Modeling Best Practices

Number Sign Convention

Complex vs Simple Models

Interactive Exercise 2

Model Framework

Financial Forecasting Framework

Interactive Exercise 3

Model Setup and Assumptions

The Case Study

Downloadable Files

Historical Data Walkthrough

Different Forecasting Methods

Model Assumptions and Drivers

Income Statement Historical Metrics

Historical Metrics vs Guidance Review

Interactive Exercise 4

Forecasting Revenues Down to EBITDA

Forecasting Methods

Forecasting Revenue

Forecasting Gross Margin and Expenses

Forecasting to EBITDA

Interactive Exercise 5

Forecasting Working Capital and PP&E

Working Capital Overview

Accounts Receivable

Accounts Payable

Inventory

Calculating Working Capital Metrics

Working Capital Scheduling

Forecasting Capital Assets

PP&E Schedule

Interactive Exercise 6

Forecasting Capital Structure

Forecasting Debt and Equity

Introduction to Capital Structure

Debt Corkscrew and Interest Expense

Common Stock Corkscrew with Retained Earnings

Interactive Exercise 7

Complete the Cash Flow Statement

Intro to the Cash Flow Statement

Cash from Operating Activities

Cash from Investing and Financing Activities

Cash Flow from Statement Walkthrough

Interactive Exercise 8

Review and Audit

Auditing and Reviewing Techniques

Auditing and Reviewing the Model Part 1

Auditing and Reviewing the Model Part 2

Linking Chart Data

Interactive Exercise 9

Course Summary

Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Financial Modeling & Valuation Analyst (FMVA)® Certification

Introduction to 3-Statement Modeling is part of the Financial Modeling & Valuation Analyst (FMVA)® certification, which includes 42 courses.

Skills Learned Financial modeling and valuation, sensitivity analysis, strategy
Career Prep Investment banking and equity research, FP&A, corporate development

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What our students say

Perfect for begining the 3 Statement Financial Model.

Muhammad Ramzan Shaukat

Great introductory course
The intro to 3 statement financial modeling course created a simple foundation to build upon as I develop as an analyst. I look forward to continued learning.

Wes Rodgers

enjoyable learning with CFI
well organized, easy to digest and efficient in summarizing key principles

natanael suryadi

Engaging, Challenging, Refreshing and Exciting

Charles Pev

Great Intro Course
Very easy to digest and get familiar with

Rialton Singh

Enjoyable
Really shed light on the basics

Precious Emwinghare Igbineweka

Great course
Great way to gain a deeper understanding of the three financial statements.

James Scott

Very complete Modeling
We went through the 3 Financial Statements + some Support Schedules, very cool

Ricardo Fletes

WONDERFUL BUT CHALLENGING
I had to rewrite the exam again but that enhanced my knowledge on the 3 statement financial modelling.

Benjamin Nathan Otchere

Great Course
My only feedback is that after the exam the correct answers should be displayed and explained.

Anika Clarke

Challenging and complete
As my first approach to a financial model, this course has been wonderful

Carlos Eduardo Díaz Villarreal

Clear and step by step process
Clearly explains the concepts process and gives a strong foundation for the next step

Ben Davis

STUDYING WITH CFI GIVES ME WONDERFUL LEARNING EXPRIENCE
I ENCOURAGE ANY FINANCE PROFESSIONAL TO PURSUE CIF COURSES TO TAKE SOLIDIFY HIS EXERTISE KNOWLEDGE & EXPERIENCE TO THE NEXT LEVEL

MUSSIE MULUKEN

An excellent course for model building
The course was delivered perfectly, outlining modeling basics and full of useful Excel shortcuts. Highly recommend.

Michael Kelly

Simplifying of Material
Material is easy to grasp. Thank you for opting for short videos as opposed to a 3 hour lecture. Content is easier to grasp as concentration is held throughout the video.

Matshediso Madolo

Provide a good foundations about how items in the 3 financial statements are connected to each other and how to calculate each item in these 3 financial statements.

Minh Tuong

COURSE
Great course, very complete to understand modeling

Mariano Ruiz de Chavez Macias

Great course for a kickstart to modelling
Easy to understand and practice.

Charan Patagarla

Course Completed
Really Enjoyed the course. Good starting point for learning financial modeling.

Anamul Haque

Perfect Experience
Has been a good experience all through

Titilope Adelekan

Educationally fulfilling
Definitely a must do course, it will teach you how to be more consistent with your 3 statement models.

Lee Anselmo Blackman

Great experience
like courses and exam

Amjad Shahin

I attended a top graduate school and the courses prepared by the CFI are second to none. In most cases they are more practical than what you learn in a finance or accounting track to prepare someone for the real world.

David Wiggs

Fantastic and it's very important in career
It is very beneficial for the career

JALAL HASSAN MOHAMEDIN

Fantastic
Awesome course would recommend others

Aamir Kanchwala

My Analysis skilled improved by 3Statment Model
My Analysis skilled improved by 3 Statment Model

Maher Hussien

Exciting Course
Really helpful course in understanding 3 statement modeling

Agha Muzahir Hussain

Wonderful course
Good Learning Experience

Waqas Muhammad Gulfam

Super educational
I really enjoyed completing this course. The materials are excellent and the exercises are so engaging. A lot of great topics to learn in this course. The explanation of the key structure for model building and the best practices for modeling is my personal favorite.

MARICEL ABOY

3 Financial Statement Modelling
Financial modelling is an indispensable course within the realm of finance, and I highly recommend it to my fellow finance managers as a valuable pursuit in their career development.

Innocent IRAKOZE

Good Course
A good course for beginner like me.

Debasis Sengupta

Perfect and interesting course . Thanks.

Ibrahim Saad Edeen Jarrar

Consistent throughout the program
This builds a good foundation and you will continue to learn more as you go through the program. Valuable information.

Gregorio Gonzales III

Amazing Course
Straight to the point and very informative.

Mucio Batista

a relatively simple but great course
i think this course allows to understand a few concepts on a relatively simple example and thus prepare for the more complex courses in the topic. really useful

Gábor Tóth

Excellent Introduction to 3-Statement Modeling
All the information displayed is really well explained and useful for real life case. They give you really good tips about good practices to do a 3-Statments modeling.

Edwin Keff Bello

Great Course
Very informative and reinforced my knowledge of 3 statement modelling.

Colm Heatley

Wonderful Course
Wonderful course for all manager who will make analytical model.

Md Abdus Samad

CFI's FMVA courses are really engaging, very practical and enables you to hit the ground running on the job. I encourage any finance practitioner or any one who uses excel daily to take these courses

Ekome Enongene Nzoh Ngande

Good
Very informative course

Sheen Sara Symon

The course was engaging
It exceeded my expectations on every front. It's an excellent choice for both aspiring finance professionals and those already working in the field looking to sharpen their skills. The course's well-structured content, expert instruction, and emphasis on practical application make it a standout option in the realm of corporate finance education.

IFEOMA EZERIBE

listen again and again take a note when you encounter new concept.

Arefayne Wodajo

Great intro level course
Covered modeling and accounting concepts well.

Michelle Eisenberg

CFI courses is highly recommended
it teaches you the foundation needed to be excellent financial analyst. after that you need to practice and apply the knowledge

Reem AlQattan

Very Informative
Even If you have a strong foundation on Accounting and Financial Statements, this course will help by refreshing your knowledge as well as give a practical model to build.

Omar Almuzaini

Amazingly simple
Very easy-to-follow explanation and practical application.

Winston Lingga Ho

Great introductury course for building forcasted 3 statement modeling
Even though it is introductory it really gives you a lot of knowledge starting from inputs, than to calculations and ending with outputs that is with charts.

Amir Imeri

Its been a great learning experience is looking foward to other causes
Its been a great journey wealth taking

REUBEN KACHEPA

Its been a great learning experience is looking foward to other causes
Its been a great journey wealth taking

REUBEN KACHEPA

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Introduction to 3-Statement Modeling

Introduction to 3-Statement Modeling Course Overview

3-Statement Modeling Learning Objectives

Who Should Take This Course?

Courses we recommend you take in advance

Introduction to 3-Statement Modeling

Get Recognized With CFI

What you'll learn

This Course is Part of the Following Programs

What our students say

Muhammad Ramzan Shaukat

Wes Rodgers

natanael suryadi

Charles Pev

Rialton Singh

Precious Emwinghare Igbineweka

James Scott

Ricardo Fletes

Benjamin Nathan Otchere

Anika Clarke

Carlos Eduardo Díaz Villarreal

Ben Davis

MUSSIE MULUKEN

Michael Kelly

Matshediso Madolo

Minh Tuong

Mariano Ruiz de Chavez Macias

Charan Patagarla

Anamul Haque

Titilope Adelekan

Lee Anselmo Blackman

Amjad Shahin

David Wiggs

JALAL HASSAN MOHAMEDIN

Aamir Kanchwala

Maher Hussien

Agha Muzahir Hussain

Waqas Muhammad Gulfam

MARICEL ABOY

Innocent IRAKOZE

Debasis Sengupta

Ibrahim Saad Edeen Jarrar

Gregorio Gonzales III

Mucio Batista

Gábor Tóth

Edwin Keff Bello

Colm Heatley

Md Abdus Samad

Ekome Enongene Nzoh Ngande

Sheen Sara Symon

IFEOMA EZERIBE

Arefayne Wodajo

Michelle Eisenberg

Reem AlQattan

Omar Almuzaini

Winston Lingga Ho

Amir Imeri

REUBEN KACHEPA

REUBEN KACHEPA

Frequently asked questions

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