Build a Dynamic 3 Statement Financial Model From Scratch

[@KenjiExplains]

📝 Our Complete Finance & Valuation Course: www.careerprinciples.com/courses/finance-valuation-course

[@drinksdessertsdiaries4613]

Very informative but I was lost by your voice and face. Nice voice and handsome.

[@cfiexam1572]

A KZbin channel for the FMVA certificate. An exam will be uploaded for each module, in addition to 50 general exams for the certificate to train for the exam. kzbin.info/door/NXXbI0wyijpmkr7PIoAFtg Certificate Explanation Channel kzbin.info/aero/PLVU8ZFD--E7taLJe0PoEE9PGpmcPDDiW7

[@nsengimanajd1088]

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[@prakveasna010]

how to download sir, i need your simple file excel , thank you sir

[@thom6753]

Big lair

[@aleli1997]

Hi Kenji, Just wanted to say a big thank you for your fantastic videos. I have gained so much knowledge from them. As a holder of an MBA in Finance from a private school, I can vouch that your videos are of the highest quality for educational purposes. KZbin is a great platform to learn new things with amazing educators like you. I have been refreshing my skills and knowledge with your videos, which are truly top-notch. As a Financial & Cost Analyst for a public S&P company, I can attest that one never stops learning. I'm now a new subscriber and will definitely recommend you to all my colleagues. Keep up the great work! Cheers!

[@Bob_Ugee]

I LOVE THIS REVIEW

[@altair769]

This is my story as well. Thanks so much, Kenji!

[@DharmendarKumar-go3ei]

Clear and crisp information kenji no one were explained like you. Continue these type videos on excel. "sharing is caring"

[@KenjiExplains]

thanks will do!

[@stephanienance5137]

This was really well done. My first attempt at connecting all three statements. Great teacher!

[@blessingpaul5484]

Now I have more knowledge about personal finance. I just subscribed to your channel. Big ups to everyone working effortlessly trying to earn a living while building wealth in this recession. I’m 45 and my husband is 51, we are both retired, no debts. We are planning on relocating to Thailand. We are currently living a frugal and financially savvy lifestyle and generating passive income even during this recessionary period. Our commitment to saving and investing in the financial market has enabled us to maintain this lifestyle and continue earning monthly passively through investment!"

[@philipcollen482]

Congratulations on your early retirement, Interesting indeed! Currently, I am in dire need of investment advice or tips. Last year, I hesitated and failed to take any action until the year concluded. However, this year, I am determined to try something new, as I am very receptive to various investment ideas. I want to be retired in my forties or fifties.

[@blessingpaul5484]

No problem at all! If you're seeking to earn substantial profits from your investment, I would suggest determining your investment horizon and implementing a long-term plan. I worked with Nolan Velden Brent to create a long-term investment strategy, and he assisted us in managing our investments while we focused on my jobs without any concerns.

[@philipcollen482]

Thank you for your advice. It's challenging to find a reliable investment advisor here, and I appreciate your input. Seeing the successes you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.

[@blessingpaul5484]

I work with **Nolan Velden Brent** ,who is based in the United States. If you would like more information about him, you can conduct a search online. He even got featured on CNN recently.

[@KatherineAnderson-lm8bw]

Thailand is really a nice comfy plan to retire. Working with a skilled financial planner can be compared to having a mentor in the field of finance. I used to struggle to invest on my own and ended up losing money, but things changed once I started working with *Nolan Velden Brent* . He played a pivotal role in helping me improve my financial situation. Previously, I relied solely on my job and salary for income, but now I have found ways to generate additional income with ease, which has allowed me to leave traditional employment. Nowadays, I believe that investing is not a choice, but a necessity for anyone who desires financial independence and a good quality of life.

[@shardulnikam9322]

I am helping my mom with an extremely small pickle business, just started a few months ago. Thank you so much for this video! This will help us massively.

[@DaniHagebeukREAL]

Still in business?

[@mohammadhammad7974]

Very informative and great video. Three comments: 1. the CFO is wrong; you should add the net income to it, 2. and the cash balance should never be minus! In this case, more short-term borrowing should be modeled. 3. the fully depreciated assets should be removed from the fixed assets, and accumulated depreciation balances

[@GucciGeorg]

You saved me a 2 am “pls fix“

[@nicholash566]

Quick fix to this model in 2022 he estimates negative cash balance, obviously that cant happen or the company would go bankrupt, so an easy fix is to have a increase of capital (increasing common stock and cash by the same amount) so you don't go bankrupt. In the cash flow it would be a new row for capital raise or something along those lines. Great model!

[@Brigh578]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly

[@Brigh578]

Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $508k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choi

[@JennyMaxwell-r1y]

that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s your financial advisor or coach, do you mind hooking me up?

[@Brigh578]

The adviser I'm in touch with is *CAROLINA MELINA PHERSON* she works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else, for me she strategy works hence my result. She provides entry and exit point for the securities I focus on.

[@JennyMaxwell-r1y]

She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.

[@sitio9208]

Hi Kenji Great video! I love how the simplicity you use to explain this! Very easy to learn!

[@navaheierdal6449]

Thank you very much Kenji! Much love and respect from Sweden

[@jessicawang96]

omg...this video is so much better an entire semester with my prof

[@DecodaJ21]

Thanks a million Kenji, I really appreciate this. These videos have really helped a ton. Keep up the great work!!!

[@adnanabbasi9482]

Very few videos amazed me. This is undoubtedly one of them.🌟🌟🌟🌟🌟🌟🌟

[@akhilnair4475]

For the first time in my life, I could match a Balance Sheet. I feel, I have conquered the Mount Everest. God Bless You, Brother!

[@user-vg5bz2cc9e]

THANKYOU SO MUCH FOR THE GOOD QUALITY OF VIDEO AND EXPLANATION !!!

[@KenjiExplains]

Check out this video for an updated version with a revolver so you can't run out of cash! kzbin.info/www/bejne/Z3zZo4SFhrV2eqs

[@isaacbatterham9952]

Best I’ve seen. Can you make one where you just build it from absolute scratch; like what you’d expect in an interview

[@SolidHelion]

Really good explanation without unnecessary info and complexity. I think you should include the net income when you calculate the Cashflow from Operations as it is obviously an "operational factor". Just my 2c. Keep up the good work!

[@KenjiExplains]

Thank you! And yes I agree not sure why I had it as a separate item there…luckily doesn’t affect the overall calculation

[@aspectoflife]

the best, short and compact,thanks Kenji the great

[@lskknl10]

Purchased career principles. Thank you for the course. It is very clearly explained step by step easy to follow. with start and end excel files. It's better than big name ones. customer.

[@KenjiExplains]

Thank you for this comment :)

[@anv.4614]

Dear Kenji.Thank you so much for the great lesson.

[@davinsingh5296]

THANK YOU! So much for these series!! It's just amazing Kenji

[@KenjiExplains]

Glad you like them, thank you for commenting!!

[@girishghadge8460]

Kenji Thanks really a crisp and precise explanation God bless you thanks again

[@SerdarArcoglu]

This video is quite helpful for new starters. Thank you for sharing it, one comment: Cash balance shouls always be above zero. There might be one more control for it, negative cash balance shall be cured i) capital increase ii) borrowing or iii) asset sale iv) or NWC management.

[@abubakarrk.conteh325]

I must say, this video really makes my work so easy now that i saw it. thanks a lot, you really add some in me from an accounting point of view.

[@MICT2022]

I have learnt a lot from you. The model is simple and elaborate and resourceful for projections. Your work is great

[@Maximus18.6]

Thanks for you video, you are a genius

[@InManIsGod]

Thank you so much. This is life-saving!

[@henrykaibunga4442]

This Guy is pure Gold...

[@fatimatuibrahim3455]

hello kenji, your video is exactly what I'm looking for, but I'm a beginner and you speak faster...

[@izhamkamaruddin7868]

simple and easy to follow. Thank you for putting this video.

[@mohamedh.ismail4760]

A very good video. I am ex multinational companies and what ur doing is simple and hence professional. Good job man

[@nupurmahajan5396]

Hi Kenji, any video with details on how to forecast items like revenue, capex, COGS etc.? Also i loved this video and made the financial model too

[@SohJunLin]

Best tutorials out there! Keep it up Kenji

[@oumagondi9181]

Thank you so much. The lesson is amazing.

[@ricardomantovaniassis]

Dear Kenji, thanks for your explanation. Amazing! 👍👍

[@aliq4059]

One of the best instructors. Great work!

[@adityakohli6266]

Amazing video. Just one observation: (23:42) - To calculate the fixed assets value for 2022 you should have added ending value of 2021 that is 8000 & capex of 14000, because ending value of net fixed assets(2021) would serve as beginning value for year 2022. Please let me know if i am not correct. Thanks.

[@rcirstea74]

And negative cash usually means an increase in overdrafts. To which an interest rate needs to be added, so impact on net income so on equity. This would have complicated a bit the story, but Kenji just wanted to keep things simple to explain the basic principles, without going to resort to a goal seek to solve the balance sheet equilibrium.

[@agenew6451]

Thank you indeed kenji ! it really contribute a lot for me.

[@kevweokagbare3260]

For the assumptions, when do you use Revenue versus Net Revenue? You used both throughout this example.

[@robertoramirez4276]

This was an easy to follow video. Thanks

[@vedantrouth3530]

Pretty cool, easy, and intuitive stuff that I feared until I saw this video and implemented simultaneously. Thanks, Kenji!

[@chahwahl.sakambwa6673]

Kenji is an amazing financial specialist

[@damolaolayinka8477]

This was extremely helpful Kenji, it was a great refressher. Thank You

[@altair769]

3:31 "So we have the tax rate which, well, is just inevitable, right!" LOL! This moment was Gold.

[@shayanhussain4780]

Thanks for the Ctrl + pgup/dn shortcut.

[@estherarasi744]

I enjoyed every bit of the video. Thank you

[@abirbadawi01]

Kenji, amazing work, thank you

[@ronaldlongfellow87]

Thank you for the download excel sheets and the video

[@MayurKamireddy]

You are awesome Kenji

[@martens9531]

Great video! Really helped me preparing for my recruitment process.

[@leo2hari]

I am really luckiest person to subscribe your channel Kenji....❤ from India🙏

[@HamzaAli-uo7my]

one of the best videos ever

[@mariomartinez4585]

Thanks Kenji for the explanation

[@wrickeynelson9689]

Hi Kenji Am impressed by the very good presentation. It has helped me in a lot of my financial models in Excel.

[@markom001]

Yess another Excel video, thank you Kenji! :) these help a lot!

[@KenjiExplains]

Happy to hear that!

[@wooddog007]

Very helpful lesson. People who don't pay for this kind of help should be embarrassed. Thanks Kenji. But ... @29:20 ... but I think OCF should be NI + (Operating Activites) ... not just OA? No? What you have summed is just the adjustments to reconcile net income to net cash. And finally, I am not sure a negative cash balance @31:35 in 2022 is right.

[@irvindzimiri3267]

kenji you are the best my bro

[@renzoresh]

Thanks Kenji!

[@sinterialemain906]

Great, thank you Kenji

[@willzinner8813]

this is great kenji cant thank you enough

[@KenjiExplains]

Thanks for watching Will!

[@SuperFarhan6]

Thank you! Kenji, it took me several videos to understand, but your clip was sufficient. Can you pls share the excel working file or perhaps completed file from this video. I downloaded the base file w/o data in it.

[@shantanudeshpande2441]

Great work Kenji👍

[@Oluwaseun_Olusanjo]

Awesome Thanks Kenji

[@erekosimainye1811]

Quite educative. Thank you

[@Flawed_and_Fabulous]

The video is awesome. cheers!!!

[@rationalis5867]

Dang, Financial Analyst job looks interesting!

[@richfrill]

Thank you, I learned from you handsome man

[@otienooliver9557]

Good job. Very clear

[@santos5312]

Awesome thank you for this, now i can solve my base case for tomorrow´s interview :B

[@saratkong6649]

Amazing...! big thanks @Kenji

[@cryto6274]

Really thorough video, thanks for the great content 👍

[@Alphapowermind]

Thanks for the informative video

[@damianboyd9142]

I don't understand what is happening. I do everything as you do it, step by step, but it does not work in my excel.

[@nimda2sdfsdfsd]

Great Video @kenji, But one question. 17:52 Why do you put Acc. Depreciation as 2000 it should be to total depreciation in that year . Correct me if I am wrong.

[@minionhippo]

Same question

[@kidze73]

Hi Kenji thanks for the detailed guide. I have a question: how do you go about determining how much a company reinvest its earning from the previous year into this year invested capital? Would you use use last year’s net income? NOPAT? Or net income - dividend paid? And how can you tell how much % of that does the company keep to reinvest in the next year’s balance sheet? I hope the question is clear.

[@rohanswer5091]

I think this is a subjective call and depends on the life cycle stage at which the company is at.

[@mr.sophisticated.7951]

This will be decided by management or boards.....

[@anthonymurrell4667]

Thank you very much!🙏🏿

[@ahshineyaca]

Amazing Kenji, I learned so much quick keyboard click on the formula

[@eguchiyuuki]

very beneficial

[@MJWinters]

very informative!! just have a question: when i use the shortcut 'alt + H + 6' nothing happens. do you know how to fix that?

[@donpablu]

damn man, this is amazing, thank you. subscribed

[@ykn7018]

great course, Kenji. regarding current asset, I notice you dont have any inventory there? assuming Just In Time, I suppose ? how do you account and calculate for inventory item if we are not using JIT?

[@pdv457]

This is gold, congrats

[@KenjiExplains]

Cheers!

[@yohannaagbanaji8012]

What a beautiful video, pls I need video that I can learn how to design an spreadsheed for savings and contributions. Where I can save and retrieve recoreds of activities.

[@Elbranto1]

Loved this video, thank you.

[@Richardndegwa]

Thank you for this

[@rishigupta2342]

Very good explanation. Kindly make more such videos.

[@seayorn]

Great work on the video. How do you anticipate if a cell changes e.g life value change if you lock different cells?

[@ra4872]

Thank you very much Kenji. You're awesome! But can you please explain how possibly you can have a negative cash balance as of year end 2023 ? Just because it is an estimate or forecast?

[@geri8355]

He added the cash for those years in the end because he needed the cash flow statement to determine the amount of cash.

[@maximilianbuske4510]

Just great!

[@Malik-ix2kx]

Very helpful video

[@JakeStormhunter]

Your videos have been helping me a lot with my undergrad classes. Thank you so much!! Question though: Is there a specific reason you use ctrl c and ctrl v for dragging your formulas instead of highlighting and using ctrl r or ctrl d?

[@KenjiExplains]

Thank you! Yeah the shortcuts you mention don’t work on my computer haha that’s why im sticking to the ctrl c v 😂

[@JakeStormhunter]

@@KenjiExplains ok Thanks!!

[@raphapam07]

How is the beltway. to build de assumptions for the P&L? (Business partnering) with the teams?

[@registrocuevas5401]

thank you

[@devanshiparmar2670]

Thanks for the amazing lecture, I only have one doubt 28.12 Receivable = current - previous year. Is it true? Generally, we are taking as previous - current year.

[@lenol4936]

thanks a lot super helpful!

[@seifelmoafi4141]

You can't have a negative cash balance even if your balance sheet checks so assumptions of this model are off. Mechanically correct working though in terms of linking the three statement model

[@keanudsouza3633]

Hi Kenji, good explanation. Just had a couple of questions. 1) Why isn’t there historical data for the income statement like you have in the balance sheet? 2) In the balance sheet, why isn’t there an entry for Inventory?

[@1stepolive]

i think its bcs Balance Sheet is a net statement from the prior year. Otherwise, Income Statement is a statement at some particular periode

[@Ola-iu6zc]

Hi Kenji, thanks for simplifying this. I have built the model using your video, please can I share this as a PowerPoint or image on LinkedIn? Your page will be referenced. Thanks. Do you have 3 statement model with scenario analysis?