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 session to practice in Excel.
- DCF
- Trading comparables
- Sum of the parts
- LBO