A Three statement model is a basic setup for financial modelling.
This type of model includes three different statements:
- Income statement
- Balance sheet
- Cash flow
These are all linked with Excel formulas.
The objective is to set it up so all the accounts are connected and a set of assumptions can drive changes in the entire model.
It’s essential to have a fundamental understanding of how to link the 3 financial statements.
This requires a solid foundation of accounting, finance, and Excel skills.
Enroll in our free certificated Essential Financial Modeling course if you want to build a basic three-statement model.
It will teach you how to build a three-statement model from start to finish.
If you have a financial modelling query that you would like to ask our team, then you can contact us here.