Financial statement modeling is the process of connecting the three financial statements in Excel using formulas and functions. The process creates a three-statement model, which can then be used in more advanced types of financial analysis, including discounted cash flow (DCF) analysis, leveraged buyouts (LBO), and mergers and acquisitions. Linking the statements requires a solid understanding of accounting, finance, and Excel.
CFI is a the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further: