How EBITDA and Net Income Shape Financial Performance When evaluating a company’s profitability, two key metrics often come into play: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and Net Income. While both provide valuable insights into financial performance, they serve different purposes in financial analysis, modeling, valuation, and decision-making. Understanding the differences between EBITDA…
How Do Top Finance Teams Build and Use Financial Models To Drive Billion-Dollar Decisions? In this episode of Corporate Finance Explained, we break down the key techniques and best practices in financial modeling—a must-have skill for corporate finance professionals. What You’ll Learn: The Role of Financial Modeling – How companies use models for budgeting, valuation,…
How to Build a Career in FP&A | Finance Jobs, Skills & Growth Insights Financial Planning & Analysis (FP&A) is one of the fastest-growing fields in finance, but many professionals don’t fully understand what the role entails. In this episode of CFI’s Careers in Finance series, we sit down with Mimi Hu, Director of Trade…
The Strategic Importance of Choosing the Right Forecasting Model Forecasting financial performance isn’t a one-size-fits-all process. The right approach depends on the business model, available data, and the purpose of the forecast. Financial analysts rely on forecasting models to predict future performance and guide critical business decisions. But which method works best? In this guide,…
When Numbers and Strategy Collide: The Financial Modeling Disconnect Suppose you work as a financial analyst for a mid-sized retailer that launches a new premium product line. Six months later, financial forecasts show a 40% revenue shortfall. Why? Their models used historical performance data without factoring in the business’s strategic shift to premium positioning. This…
Understanding the Budgeting Process: Why It’s Essential A budgeting process translates a company’s goals into a financial plan that outlines the spending needed to achieve them. The budget defines where resources go, how investments are prioritized, and the financial constraints teams must work within. Developing an accurate budget requires multiple steps, and often months, to…
Mastering FP&A 3-Statement Modeling Building a 3-statement financial model is a critical skill for finance professionals, but many struggle to get their models to balance. In this episode of What’s New at CFI on FinPod, we break down CFI’s latest course: FP&A 3-Statement Modeling—designed to help finance professionals build structured, scalable models with confidence. What You’ll…
Understanding Quantitative vs. Qualitative Budgeting: When Numbers Alone Aren’t Enough Picture this: Your meticulously crafted budget, built on five years of historical data and precise financial models, falls apart just three months into the fiscal year. When this happens, it’s typically because financial plans rely solely on quantitative budgeting without considering the strategic insights from…
How Supporting Schedules Improve Clarity in Financial Models Without well-structured supporting schedules, 3-statement financial models can quickly become cluttered, difficult to audit, and prone to errors. These schedules help organize complex calculations, ensuring financial models remain accurate, transparent, and easy to modify. What are Supporting Schedules and How Do They Work? A supporting schedule (or…
GRR vs. NRR: Measuring Sustainable Growth in SaaS What’s the real measure of a thriving SaaS business — keeping customers or expanding their accounts? When measuring revenue retention, two key metrics dominate the conversation: Gross Revenue Retention (GRR) and Net Revenue Retention (NRR). While both track recurring revenue, they serve different purposes: GRR focuses solely…
