The financial statement analysis (FSA) course provides participants with the “nuts and bolts” of accounting from a financial analyst’s perspective. This FSA course focuses on accounting fundamentals, emphasizing the interrelationships between the 3 financial statements, and prepares participants for subsequent modeling, valuation, and credit modules.

  • Overview
    • Fundamental accounting equation
    • Key links between the 3 financial statements
  • Income statement
    • Revenue recognition and the matching principle
    • Accrual vs. cash accounting
    • Types of profits and expenses
    • EBIT and EBITDA
    • Net income and EPS
  • Balance sheet
    • Working capital
    • Non-current assets
    • Debt and equity
  • Cash flow statement
    • Operating, investing and financing cash flows
    • Building a cash flow statement from scratch

This session will introduce participants to Excel fundamentals through the lens of financial modeling.

  • Keyboard shortcuts
  • Navigation
  • Selection
  • Cut / copy / paste
  • File commands
  • Optimal settings
  • Formula construction
  • Key functions
  • Tower vs. matrix models
  • Intro income statement 

This session will introduce participants to the fundamentals of 3 statement modeling. Participants will learn how to forecast the 3 financial statements and review key links between the financial statements.

  • Forecast assumptions
  • Income statement
  • Balance sheet
  • Cash flow statement

Building on the concepts covered in the Excel Modeling Fundamentals and Intro to Modeling videos, participants will now build a fully-integrated 3 statement financial model. Participants will learn how to forecast the 3 financial statements and supporting schedules, balance the model and handle issues related to circularities. Best practices are incorporated throughout the video.

  • Steps to building a 3 statement model
  • Income statement construction
  • Supporting calculations and debt schedule
  • Balance sheet and cash flow statement construction
  • Balancing the model
  • Understanding circular references and building a circ breaker

This course reviews Pillars’ 12 steps to building a 3 statement operating model (non‐cash sweep). Emphasis is placed on the complexities associated with a real company model.

  • Steps to building a model
  • Income statement construction
  • Supporting calculations and debt schedule
  • Balance sheet and cash flow statement construction
  • Balancing the model

This course introduces participants to corporate valuation while focusing on the strengths and weaknesses of the 4 primary valuation methodologies.

  • Enterprise vs. equity value
  • Fundamental vs. relative valuation
  • Minority vs. majority state valuation
  • Primary valuation methodologies
    • Trading comparables
    • Transaction comparables
    • DCF
    • LBO
  • Valuation “football field”

Now put the valuation principles learned during your paper and pencil modeling to practice in Excel.

  • DCF
  • Trading comparables
  • Sum of the parts
  • LBO