Build a 3 Statement Financial Model (FULL Tutorial + Free Template)

[@KenjiExplains]

📈 Take our Complete Finance & Valuation Course: www.careerprinciples.com/courses/finance-valuation-course

[@jyotibajaj3230]

Hey Kenji, your videos are very useful for me and the way you explain is too good. I like the way you teach ❤.

[@kdxzz1]

Hi Kenji, thanks for this - - you used very specific items for the FC available for the revolver (and if extended other debt items) - - I'm wondering what am I trying to avoid in the CF Statement? Why couldn't I use net increase/decrease in cash?

[@The.A.P.]

Hi Kenji, I believe there is a little mistake with the Total Interest Expense formula after the revolver calculation. Should the formula for that be "Revolver Interest Rate X Revolver Interest + Interest on Debt" or just "Revolver Interest + Interest on Debt" since we are already accounting for the 5% interest rate on Revolver interest. Please clear my doubt.

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[@jackcarr7383]

Great Video. I've learned alot from KZbin videos. Another way to test the Revolver calculations is to increase the CAPEX amount to force a negative cash balance. This method also keeps the Balance Sheet in balance.

[@KenjiExplains]

Great point!

[@RizkiMaulana-kl8gi]

The ctrl+R and D is absolutely magic, you never stop to amazed me. How on earth i never know of this hahah

[@tiraimarksel55]

I can't believe that now I understand the connection of those 3 financial statements from learning Excel. It was used to be so confusing to understand from the theory itself. And you make it look so simple Kenji, only in 33 minutes video!! 😂 Oh, I have 1 question. For the final total interest expense, why did you remultiply the interest expense with the revolver interest rate? Shouldn't we only need to sum up the interest expense from revolver with the interest expense from the LT debt? Cmiiw Anyway, great work! I learn a lot from you! Thank you so much! God bless you! 😁

[@mubb2000]

Hi Kenji, Great video, thanks a ton.... really useful. At minute 30:16, it seems you have multiplied the interest expense again with the rate, which is visible at minute 32:34 as showing different result (Revolver interest is not properly added). Please do have a look. Once again, fantastic video, well done. and Thank you.

[@KenjiExplains]

🆓 DOWNLOAD the Free Excel file for this video: careerprinciples.myflodesk.com/f64zoavpdx (check your browser/desktop download folder to find it after filling the form)

[@saqibsattar7799]

Thank you

[@LouisKintzel]

30:18min - Why do you calculate the revolver interest rate with the interest expense of the revolver and then add the other interest expense?

[@Firmansyah-cr8wj]

this is exactly what I found too, wonder why your question hasn't been answered

[@KirksMagicVideos]

I believe you have an error calculating the final total interest expense in Row 130 at the 30'20" mark. You multiplied the Interest Exp by the Revolver Interest Rate a second time before adding the LT Debt interest expense. Let me know if I'm wrong :)

[@renemarquez4451]

Same question

[@xunit94]

This was fantastic! It would be great if you could do a DCF using real financials!

[@JusticeFinance]

Great video, however it seems at 30:18, you calculated interest expense incorrectly.

[@camlex6310]

Really helpful!! The free template is great - cheers

[@MaNiAcBLooD7s]

Hi Kenji great video! Quick question - if your interest expense = revolver interest rate * revolver ending balance, why does total interest expense include revolver interest rate * interest expense again? Shouldn't total interest expense just be = interest expense from revolving credit + interest on LT debt?

[@audreychan4988]

I have the same doubt on this

[@brendachepchirchir50]

I also think that as an error on his side. Hope he will clarify.

[@RohitThakur-en7qw]

Hey Kenji Rohit here from India Please do Make a detailed video on how to Analyse Financial Statements using Ratio analysis.

[@mntungwamorojele2285]

Hi Kenji. That is an excellent video. Do you have one that is for a start-up and therefore does not have previous year's financials?

[@fernandoonorio2413]

LOVE IT KENJI! Just a quick question, How could you get negative cash?

[@b.r.srihari4099]

Another superb video!!

[@ajraol9032]

Thanks for yet another informative video! Though sometimes the thought just crosses my mind that knowing all this may in the end not be of use if I’m not able to make it into IB 😂

[@rareaqua7]

Fantastic video on the 3-statement model! I’m curious whether you’ve considered incorporating key financial metrics like Days Inventory Outstanding (DIO), Days Sales Outstanding (DSO), and Days Payable Outstanding (DPO) to enhance the accuracy of your forecasting. Additionally, exploring net working capital in more detail could provide a more comprehensive view of the Cash Flow Statement. Thank you for offering such valuable content for free-discussing these aspects could significantly boost its educational value. What are your thoughts?

[@2b_0r_n0t_2b]

It's in the DCF video

[@saberconstruction7224]

How about a video to remove the depreciated equipment off of the books with the required journal entries to balance. Thanks.

[@Itachix520]

Thank you very much kenji

[@rezmannnn1400]

Hi Kenji, thank you for your videos. They are really helpful. How would you evaluate the existing and new asset depreciation if there are many assets with multiple Useful life years. Like 8 years 10 years and 20 years for five different assets.

[@faisalshahzad4874]

In this situation we will calculate depreciation of each asset separately. Foe Example Asset A =$15000&UL=3 years Dep= 5000 5000 5000 Asset B =$30000 & UL=5years Dep= 6000 6000 6000 6000 6000 Asset C =$22000 & UL=7 years Dep= 2750 2750 2750 2750 2750 2750 Total Dep =A+B+C(year wise)

[@surachetphunsawat4195]

I could make use of it. Thank You

[@antoniop.3586]

Simply awesome! Thank you very much!!

[@KenjiExplains]

Glad you like it!

[@honestballwatcher4700]

For Payables, Inventory and Receivables, I've seen cases where the value in the year below is added? Is this an IFRS vs GAAP difference?

[@karlapittwinther4206]

What is 'VG' on mac? Trying to do the shortcut for removing gridlines on mac :D

[@KenjiExplains]

the alt key shortcuts dont exist on mac unfortunately

[@aicx40]

Awesome.

[@prasadjadhav4487]

Hi brother what if we don't have opening cash balance from any of the statements and assumptions, then will this model create circular reference for interest calculation, could u plz explain that scenario as well

[@faisalshahzad4874]

what is the link between cash and interest. Interest is base on debt & rate while cash is calculated from cash flows. can u further explain your question?

[@crazyhagar]

Excellent video as always, Kenji - buying the Career Principles modelling course has been one of my best decisions! Question: similar to the balance sheet check (20:29), are there any other checks/formulas you’d build in for more complex models to make sure everything is flowing correctly? Would you also build in checks to highlight if debt or revolver drawdowns violate any covenants? (E.g., if a facility is overdrawn)

[@murilorodrigues2410]

Shouldn't you sum back the Interest in the operacional cash flow?

[@stockmarkettipsbykarankapa5172]

Won't the PAT change if revolver interest is debited to p/l account? Cash flow statement PAT WILL ALSO change!

[@ranno2264]

How do i find that capex calculation? I don't get it

[@zvmj]

Hello new subs here :)), I really enjoyed your videos and keep me catching up with excel tips. Can I request for HR Data Analyst video, I am an HR, during interview they always ask me about my Excel skills which I think pretty good but maybe I can enhance more. Thank you

[@BennettCheer]

Kenji when you hit =sum how do you select the cells using just the keyboard - what is the shortcut - I'm trying the arrows and nothing is working

[@arronmazhari3389]

You can just use the arrow keys to go the the cell you want and you can implement the shift key to highlight multiple cells together when summing

[@nancybella7474]

Can you make in googlesheet?

[@dennisbehunick9776]

How does o e get free template

[@mohitsingha1809]

In minute 30 you are once again multiplying revolvee interest rate by the interest already calculated. This looks like double counting? Please explain.

[@audreychan4988]

I have the same doubt on this

[@pastorjoe6751]

How can I learn the full course

[@faisalshahzad4874]

from kenji explains, wall street, udemy or coursera etc there are also free courses available on youtube and linkedin etc.

[@justinlozano4783]

Hi can someone shed light as to why the inclusion of a minus "-" sign is included on SG&A,COGS,TAXES thank you

[@KenjiExplains]

because theyre expenses so they affect the income statement negatively

[@alisoro983]

They are to be deducted anyway since they are expenses so to make it easier and faster, many advised to use the negative signs right away ( I hope it helps)

[@faisalshahzad4874]

because these are expenses and they are deducted from revenue

[@RohitThakur-en7qw]

Thank You So much Kenji 😊💯👏

[@KenjiExplains]

You're welcome 😊

[@velikodimitrov9397]

I noticed you didn’t link the end of year cash balance to the start of the next year. So you haven’t calculated cash correctly.

[@chiennm2011]

is the formula of Total Interest Expense wrong bro?

[@willzinner8813]

thank you so much

[@KenjiExplains]

Thanks for watching :)

[@mashhourelbasha6632]

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[@KenjiExplains]

it's in the description as mentioned in the video: careerprinciples.myflodesk.com/f64zoavpdx

[@saqibsattar7799]

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