What is Financial Modeling?
Comprehensive Guide →
How are the Three Statements Linked?
Interview Question →
How to Build an 3-Statement Model
5-Min Read →
CAGR Calculator
Excel Tutorial →
Income Statement Forecasting Guide
5-Min Read →
Profit Margin Ratio Analysis
5-Min Read →
Liquidity Ratio Analysis
5-Min Read →
Solvency Ratio Analysis
5-Min Read →
Operating Leverage (DOL)
Fixed vs. Variable Costs →
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All Financial Modeling Content
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3-Statement Model
3-Statement ModelWhat is a 3-Statement Model? The 3-Statement Model is an integrated model used to forecast the income statement, balance sheet, and cash flow statement of a company for purposes of projecting its forw...
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A/P Days
A/P DaysWhat is A/P Days? A/P Days counts the average number of days it takes for a company to fulfill an invoice from suppliers or vendors for orders placed using credit.
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A/R Days
A/R DaysWhat is A/R Days? The A/R Days measures the approximate number of days in which a company needs to retrieve cash from customers that paid using credit.
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Amazon Valuation Model (AMZN)
Amazon Valuation Model (AMZN)What is the Valuation of Amazon? Amazon (NASDAQ: AMZN) is an e-commerce company that offers online retail shopping and advertising services to consumers, as well as serving enterprises through Amazon...
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Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU)What is ARPU? The Average Revenue Per User (ARPU) quantifies the amount of revenue generated on average from each customer. The implied ARPU can be calculated by dividing the total amount of revenue g...
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Balance Sheet Forecasting Guide
Balance Sheet Forecasting GuideHow to Forecast the Balance Sheet Our Balance Sheet Forecasting Guide provides step-by-step instructions on how to forecast the key line items and how to balance a 3-statement model.
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Balance Sheet Projection Guide
Balance Sheet Projection GuideIn a finance and investment banking interview, candidates will almost certainly be asked questions that test their understanding of the relationship between the balance sheet income statement, and cas...
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Calendarization
CalendarizationWhat is Calendarization? Calendarization is the adjustment of a company’s financial data and operating performance to align with the calendar year-end date, i.e. December 31.
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DCF Model Lesson (Part 1)
DCF Model Lesson (Part 1)DCF Quick Lesson: Video Tutorial (2-Part Series) Learn the building blocks of a simple one-page DCF model consistent with the best practices you would find in investment banking. As a side benefit, th...
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DCF Model Lesson (Part 2)
DCF Model Lesson (Part 2)DCF Quick Lesson: Video Tutorial (2-Part Series) Learn the building blocks of a simple one-page DCF model consistent with the best practices you would find in investment banking. As a side benefit, th...
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Debt to Asset Ratio
Debt to Asset RatioWhat is Debt to Asset Ratio? The Debt to Asset Ratio, or “Debt Ratio”, is a solvency ratio used to determine the proportion of a company’s assets funded by debt rather than equity.
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Defensive Interval Ratio (DIR)
Defensive Interval Ratio (DIR)What is the Defensive Interval Ratio? The Defensive Interval Ratio (DIR) is a near-term liquidity ratio used to count the number of days that a company can operate using its liquid assets on hand. The...
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Financial Modeling Guide
Financial Modeling GuideWhat is Financial Modeling? Financial Modeling is a tool to understand and perform analysis on an underlying business to guide decision-making, most often built in Excel. In practice, the most common...
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Financial Modeling Techniques
Financial Modeling Techniques2017 Update: Click here for the new Ultimate Guide to Financial Modeling Conventions and Best Practices. Financial Modeling Techniques Because financial modeling requires a great deal of spreadsheet w...
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Income Statement Forecasting Guide
Income Statement Forecasting GuideHow to Forecast the Income Statement Forecasting the income statement is a key part of building a 3-statement model because it drives much of the balance sheet and cash flow statement forecasts. In th...
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Inventory Days
Inventory DaysWhat is Inventory Days? Inventory Days measures the average amount of time in which a company’s inventory is held on hand until it is sold.
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Is Wall Street Prep Worth It?
Is Wall Street Prep Worth It?Is Wall Street Prep Worth It? Trainees that complete Wall Street Prep’s Premium Package or live seminars are eligible for Wall Street Prep’s Certification in Financial & Valuation Mode...
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Last Twelve Months (LTM)
Last Twelve Months (LTM)What is LTM? LTM stands for “Last Twelve Months” and measures the performance of a metric, most often revenue, as of the trailing twelve-month period.
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Monthly Cash Flow Forecast Model
Monthly Cash Flow Forecast ModelWhat is a Monthly Cash Flow Forecast Model? The Monthly Cash Flow Forecast Model is a tool for companies to track operating performance in real time and for internal comparisons between projected cash...
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Non-GAAP Earnings
Non-GAAP EarningsWhat are Non-GAAP Earnings? Non-GAAP Earnings are reported by public companies along with their GAAP financial statements. The Generally Accepted Accounting Principles (GAAP) are the standardized set...
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Non-Recurring Items
Non-Recurring ItemsWhat are Non-Recurring Items? Non-Recurring Items are gains and losses recognized on the income statement that must be adjusted, as they are neither part of ongoing core operations nor an accurate ref...
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NVIDIA Valuation Model (NVDA)
NVIDIA Valuation Model (NVDA)What is the Valuation of NVIDIA? In the following post, we’ll build a DCF valuation model for NVIDIA (NASDAQ: NVDA) to determine its intrinsic value and implied share price. NVIDIA, a pioneer in graph...
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Overhead Rate
Overhead RateWhat is Overhead Rate? The Overhead Rate represents the proportion of a company’s revenue allocated to overhead costs, directly affecting its profit margins.
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Return on Sales (ROS)
Return on Sales (ROS)What is Return on Sales? The Return on Sales (ROS) is a ratio used to determine the efficiency at which a company converts its sales into operating profit.
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Revolver Debt
Revolver DebtWhat is Revolver Debt? In most 3-statement models, the revolver, or "revolving credit line", acts as a plug to ensure that debt automatically gets drawn to handle projected losses. Cash does the same...
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Rolling Forecast Best Practices
Rolling Forecast Best PracticesHow Does a Rolling Forecast Work? A rolling forecast is a management tool that enables organizations to continuously plan (i.e. forecast) over a set time horizon. For example, if your company produces...
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Types of Financial Models
Types of Financial ModelsWhat are the Different Types of Financial Models? So, “What are the Different Types of Financial Models?”. The types of financial models constructed on the job are directly related to the...
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Wall Street Prep (WSP) vs. Wall Street Oasis (WSO)
Wall Street Prep (WSP) vs. Wall Street Oasis (WSO)Wall Street Prep vs. WSO: Financial Modeling Courses Wall Street Prep pioneered the Financial Modeling Self Study Program in 2003 for students and professionals pursuing careers in finance. The progra...
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Wall Street Prep vs CFI and WSO
Wall Street Prep vs CFI and WSOMany students and professionals considering a career in investment banking, equity research, or private equity think about enrolling in a financial and valuation modeling training program. Prior to 20...
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Working Capital Turnover
Working Capital TurnoverWhat is Working Capital Turnover? The Working Capital Turnover is a ratio that compares the net sales generated by a company to its net working capital (NWC).
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Year to Date (YTD)
Year to Date (YTD)What is Year to Date? YTD stands for “year to date” and represents the time period from the beginning of the fiscal year to the present date.