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What is a Three Statement Model?

Header Image - What is a Three Statement Model?
July 2022  |  Financial modelling

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.

Enroll today

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