Financial Statement Modeling

What is Financial Statement Modeling?

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, mergers and acquisitions, and leveraged buyouts (LBO). Linking the statements requires a solid understanding of accounting, finance, and Excel.


Financial Statement Modeling

Additional Questions and Answers

CFI is 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:

  • What are the types of financial models?
  • What is sensitivity analysis?
  • What is bookkeeping?
  • What are the most common valuation methods?

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.

To learn How to Build an Excel Model step-by-step, click on the image below.

financial modeling questions and answers

Analyst Certification Program

0 search results for ‘