Hey Giry, this comment makes me so happy you have no idea. This was the whole point of this channel, I was imagining what lessons would have helped me when I graduated from college. Awesome 😊
Thank you for this video! I found this because I am in the middle of jobs interview and part of the process was a financial modeling test. I studied this video to prepare and I just received the email that I excelled on the test, and I will have the final interview with the CFO. Thanks again!!
That's amazing!!! Congrats ricardo! You don't know how happy that makes me to hear it. These are the kinds of messages that help me keep going creating content
Great video. Here's a helpful tip for those struggling to balance: if your balance sheet is not balancing, quite often it's because your fixed assets, capex, and depreciation are not in sync across the 3 statements. To test for this, take last year's fixed assets, net of amortization from last year's balance sheet, add capex expenditures from the cash flow statement (which increases net fixed assets), and subtract depreciation shown on the cash flow statement and income statement (which reduces net fixed assets). The result should be the net fixed assets on your current year balance sheet. if it's not, then you're out of sync, and your balance sheet won't balance until you fix it. FA, Deprec, and Capex are a closed loop and must work together.
What has been taking me 2 years and counting can literally take me a week or so thank you so so much. New, permanent subscriber here!!!! I'm starting with my financial projections right now @10:30pm.
Oh man...what a presentation. Can't get any better than that. One of the best learning videos i have seen so far. Feels great that i stumbled upon on this video and did justice by spending 38 quality mins of my life. Thanks a ton Eric :) God bless you...
The interlinkages make way more sense when you are actually working through these statements in a real example case, sure lecture topics help us shape our approach, but without applied examples most of it goes in one ear and out the other! You have a natural talent for teaching, thank you for this content!
I'm really glad to hear that Eric. Yes, I honestly barely learned / understood anything in my university finance classes, so I'm trying to create lectures that are like the "anti-college" and fill those gaps. So glad you understand this stuff now and good luck! More to come!
Now I can easily understand the models and how they link-up together in simple logical explanation, no technical jargon that even hard to spell. Thanks Eric! ..looking forward for more videos.
I have to felicitate you!!!!! To do this in 30 minutes, so well explained that a novice excel user can understand it, I am surprise!!!! you are indeed bless. thank you for sharing your teaching blessing in finance!!!! Looking forward to check other lessons.
In the history of my life I have never commented on TH-cam!! So this is a big deal! AMAZING!! This was soooooo helpful. You have no idea! Being able to learn this the way you teach with templates and myself putting in the data at the same time while I paused the video was worth more than ALLLL the years i spent learning accounting in high school and college. Seriously thanks. Def. subscribed!
Great video Eric! That's the most valuable 38 minutes I've ever spent - now I get a deeper understanding of the difference between FCF and FCFF. Nicely done!
This comment really means a lot coming from someone like yourself !! Agreed - if someone coming out of college can build a model like this and has good excel skills, I think they should be good to go. Cheers iseeu666!
Best ever video on the 3 financial statements. For the first time I was able to complete end to end such model for an ongoing business. Thanks for sharing such insightful video.
This is really incredibly helpful. I haven't built a model on my own before, and I think this really gave me a guide to doing it myself. Thank you so much!
I just realized that what I learned in college much more complicated and when you watch this 38mins video , you got insights which one is important Thank you for the vid
This video was phenomenal! Totally simplifies the 3 financial statements and links them. Allows you to clearly see the difference between all 3 statements. As an economic consultant and finance professional, this video has brought me great value! Thank you so much
A really great video! Thank you so much because this helped me clear the interview of a boutique Investment Banking firm where the interviewer asked me how to link the Cash flow statement and the balance sheet and I at the back of my mind, I was like 'Thank you so much Eric Andrews'!
@@jayanthchunduru3437 You mean, as an interview question? I actually work in startups, as I'm more interested in running companies than buying / selling them! But at the end of the day people sign on for i banking because you can get tons of experience understanding transactions, capital markets and companies in a short period of time. This will leave you with a broad skill set to do many things after a few years. And in terms of societal value, banks help businesses realize the value they've created by facilitating competitive transactions and getting businesses access to liquidity. Those events can change people's lives (employees / founders getting an exit), help companies grow, help the economy grow, etc, which can be very positive. I would focus on those points.
I smashed my interview in investment banking thanks to you man, with no prior experience, for my BBA internship, they were really really impressed !!!!!! thank you so much
This was some of the most useful information I’ve ever had the privilege to consume. Am on a job hunt for financial analyst job & need to brush up my skills. Thanks for this !!
This was by far the best video I’ve seen on 3 statement modeling. I was trying to watch videos by some prep companies a couple months but those went above my head and made me give up for some time. Thanks !
Dude, I have no other words but AMAZING for you and this video! Clear, concise and engaging, as I was following every step in the excel file you provided in the video description. I just found my new TH-cam teacher!!
Just a tiny mistake I'd like to point out: under LIABILITIES > Accounts Payable & Deferred Revenue you called the raw "Total Current Assets". Should it not be Total Current Liablities? Thanks
@@giuseppebv9068 Ya that was a small mistake I made - glad you were paying attention and thanks a lot for the comments! Glad the video was valuable for you.
I'm not sure where to start from. It's my first time and Im very confused. Are you supposed to memorize every single thing? For example what if I dont remember to add longterm debt. What happens then?
Awesome video Eric. I've been a Finance manager for a few years and have always been forecasting P&Ls because we're a start up. This will help me take my forecasting skills to the next level. Cheers
I watched 2 of your video now back to back. I have always been interested in Excel and financing models but your videos saved me tones of $$$ in planned course fees. Thanks you
Good intro video. Couple of quick points to add for people interested. 1. Capex purchases should show as negative in the investment cash flows for consistency. P&L is optional but CF almost always is directional.Any asset sales would be positive for CF. 2. That 30k of undepreciated fixed assets (40-10) in the opening balance sheet most likely should be depreciated, not just the new purchases.
Really this 38 mins is worth a lot more then 4 yrs of my graduation. Hats off to you Eric. Your truly an inspiration for accountants like us. Lots of love and gud wishes for you and your future brother. ❤️❤️
I do appreciate Brother Eric! I have been a practitioner for self teaching on corporate finance..but your vide on build financial statements is reall good..Thank you very very much
I hope to have a financial analyst job by November/December, I read building a 3 statement model is a must in every FA job interview, thank you for making this Eric!! God bless you!
Gorgeouss I studied these ideas back in 2006-207 :DD but after I moved to other countires, so I studied English. So many new words and also a refresh of my previous studies. I hope to pass my JOB interviewww. Thank you so muchh it was incrediblee
Hey, I love this. I patiently watch this. Needed in my job. My new company has problem in FS. My recently task is Cash Flow. There's a discrepancy. This video of yours I will try this, hopefully can help my employer. Thank you very much. Please create more content about FS or auditing each titles, and taxes. God bless!
Thanks for the amazing video Eric, excellent as usual. I just need to raise one issue here, which is the way you calculated FCF (@33:57) I have a strong tendency to believe that you have made a mistake here, and let me explain please. FCF can only be equal to Cash flow from Operating Activities - Cash flow from Investing Activities IF THE COMPANY HAS NO OUTSTANDING DEBT ON WHICH IT PAYS INTEREST. In our case the company had an annual interest expense, and so to calculate FCF from the statement of cash flow it should be as follows: FCF = CF from OperatingActivities - Interest Expense + Interest Tax Shield - CapEx. You missed on the "Interest Expense" and the "Interest Tax Shield" and for anyone who is hesitant about this try to calculate the FCF using the original method which is FCF = EBIT(1-t) + Dep&A - Chg in NWC - CapEx and you will find that the numbers are different than in the Video, whereas if you include the "InterestExpense" and the "InterestTaxShield" as I mentioned they would be the same. Thank you
this video is gold...I am able to understand each and everything related to modelling thanks for being a CA student however i was getting problem in excel cause i am like beginner into it....love from india bro and thx for such excellent lesson
![Monthly Budgeting & Forecasting Model [Template Included]](/img/n.gif)
this 38 minutes better than my whole years in undergraduate degree. Thank you soo much Eric!
Hey Giry, this comment makes me so happy you have no idea. This was the whole point of this channel, I was imagining what lessons would have helped me when I graduated from college. Awesome 😊
Sadly its true
Its not only what we learn from this video that teaches us but the frame of mind when handling excel. Thanks a million!
@@eric_andrews Thanks a bunch man, you're a hero.
X2
Thank you for this video! I found this because I am in the middle of jobs interview and part of the process was a financial modeling test. I studied this video to prepare and I just received the email that I excelled on the test, and I will have the final interview with the CFO. Thanks again!!
That's amazing!!! Congrats ricardo! You don't know how happy that makes me to hear it. These are the kinds of messages that help me keep going creating content
Great video. Here's a helpful tip for those struggling to balance: if your balance sheet is not balancing, quite often it's because your fixed assets, capex, and depreciation are not in sync across the 3 statements. To test for this, take last year's fixed assets, net of amortization from last year's balance sheet, add capex expenditures from the cash flow statement (which increases net fixed assets), and subtract depreciation shown on the cash flow statement and income statement (which reduces net fixed assets). The result should be the net fixed assets on your current year balance sheet. if it's not, then you're out of sync, and your balance sheet won't balance until you fix it. FA, Deprec, and Capex are a closed loop and must work together.
38 minutes of my life well spent. Great content. Thank you so much for this informative video.
Thank you for watching Jimmy C & Co!! Glad it was valuable
What has been taking me 2 years and counting can literally take me a week or so thank you so so much. New, permanent subscriber here!!!! I'm starting with my financial projections right now @10:30pm.
This deserves many many more views. Pure, succinct, free !! My best wishes to you, Eric !
I'm so glad it was valuable for you! My dream is to make information free - like it should be!! Cheers try peace
Oh man...what a presentation. Can't get any better than that. One of the best learning videos i have seen so far. Feels great that i stumbled upon on this video and did justice by spending 38 quality mins of my life. Thanks a ton Eric :) God bless you...
This is simply the best lecture! No need for expensive database. Just excel spreadsheet. Keep it up
Love to hear it Susuve, cheers!!
The interlinkages make way more sense when you are actually working through these statements in a real example case, sure lecture topics help us shape our approach, but without applied examples most of it goes in one ear and out the other! You have a natural talent for teaching, thank you for this content!
I'm really glad to hear that Eric. Yes, I honestly barely learned / understood anything in my university finance classes, so I'm trying to create lectures that are like the "anti-college" and fill those gaps. So glad you understand this stuff now and good luck! More to come!
@@eric_andrews you are definitely meeting this goal. Always happy to see more!
Great Tutorial for understanding Business with Excel. I need to watch your video over and over before I get the hang of it. Thanks
Awesome! And if you want to look at the Excel file, you can download the template in the description as well. Cheers!
Now I can easily understand the models and how they link-up together in simple logical explanation, no technical jargon that even hard to spell. Thanks Eric! ..looking forward for more videos.
I have to felicitate you!!!!! To do this in 30 minutes, so well explained that a novice excel user can understand it, I am surprise!!!! you are indeed bless. thank you for sharing your teaching blessing in finance!!!! Looking forward to check other lessons.
Hey JR, it is my pleasure to help and I'm so happy that this video helped you learn these complex concepts. Appreciate the comment!!!!
In the history of my life I have never commented on TH-cam!! So this is a big deal! AMAZING!! This was soooooo helpful. You have no idea! Being able to learn this the way you teach with templates and myself putting in the data at the same time while I paused the video was worth more than ALLLL the years i spent learning accounting in high school and college. Seriously thanks. Def. subscribed!
Yessss 🚀👏
You're amazing! I've watched this three times and it's really helped me with my forecasting. Thank you!
Love to hear it Belinda!!!!! 😎😎😎🙏
Eric to see you had fun going through it without losing the audience... awesome.
Hey frank....I'm glad you made it through with me! I enjoy this stuff, thanks for the support. Cheers
Maybe the most useful 38 minutes I've spent this year. Fantastic!
Solid! The fluency of the explanation was very straight forward.
Great video Eric! That's the most valuable 38 minutes I've ever spent - now I get a deeper understanding of the difference between FCF and FCFF. Nicely done!
Glad you enjoyed it!
The satisfaction at the end when the balance check of all years was zero after plugging in the cash balances !!! Super Video Eric !
Haha yes, that's always a satisfying moment that only finance people would understand
I have 10 years experience as financial analyst and i can declare - this video is the best. Exactly what u need to know at the beginning
This comment really means a lot coming from someone like yourself !! Agreed - if someone coming out of college can build a model like this and has good excel skills, I think they should be good to go. Cheers iseeu666!
the last 38mins has been my best understanding of financial modedlling :-)
thank you Eric
Best ever video on the 3 financial statements. For the first time I was able to complete end to end such model for an ongoing business. Thanks for sharing such insightful video.
Great to hear!
This is really incredibly helpful. I haven't built a model on my own before, and I think this really gave me a guide to doing it myself. Thank you so much!
you are very welcome i'm happy to hear it!
I just realized that what I learned in college much more complicated and when you watch this 38mins video , you got insights which one is important
Thank you for the vid
You are very welcome and I completely agree
I wanted to say that this video is worth of 2 years in finance classes at school but its taken already. Such a great explanation!!!
This video was phenomenal! Totally simplifies the 3 financial statements and links them. Allows you to clearly see the difference between all 3 statements. As an economic consultant and finance professional, this video has brought me great value! Thank you so much
Appreciate the comments and the feedback Modupe. So glad it was valuable for you. Cheers!
not all heroes wear capes, but you wear the crown. Thanks for this Eric!
I appreciate that!
Literally the best video ever!!! I built the entire model and understood it all. THANK YOU!!
haha, you're welcome
A really great video! Thank you so much because this helped me clear the interview of a boutique Investment Banking firm where the interviewer asked me how to link the Cash flow statement and the balance sheet and I at the back of my mind, I was like 'Thank you so much Eric Andrews'!
Literally one of my favorite comments I've ever received. So glad to be able help you in that situation! Wishing you great success out there!!!
@@eric_andrews According to you, what would be the most flattering answer to the question, Why Investment Banking?
@@jayanthchunduru3437 You mean, as an interview question? I actually work in startups, as I'm more interested in running companies than buying / selling them! But at the end of the day people sign on for i banking because you can get tons of experience understanding transactions, capital markets and companies in a short period of time. This will leave you with a broad skill set to do many things after a few years. And in terms of societal value, banks help businesses realize the value they've created by facilitating competitive transactions and getting businesses access to liquidity. Those events can change people's lives (employees / founders getting an exit), help companies grow, help the economy grow, etc, which can be very positive. I would focus on those points.
@@eric_andrews Thank you, Eric!
Well done job , please how to prepare financial statement using excel format in very simple way
3 Statement financial model well elaborated!! You are the best on-line tutor
I smashed my interview in investment banking thanks to you man, with no prior experience, for my BBA internship, they were really really impressed !!!!!! thank you so much
🔥🔥🔥🔥🔥🔥 you deserve this Salim !!
most informative video i've seen on 3 statement modelling!!!! thank you Eric, please keep up the amazing work!
Big thanks for that clear and understandable explanation, all financial accounting course in 38 minutes! just go ahead
I'm very glad to hear it, thanks for the comment Alua!
Just brilliant. Loved your presentation, loved how quickly you put the whole thing together. Very inspiring. thank you!!!!
You're very welcome!
Fabulous Teaching Period. Cleared my concepts like Crystal I swear...
This was some of the most useful information I’ve ever had the privilege to consume. Am on a job hunt for financial analyst job & need to brush up my skills. Thanks for this !!
Absolutely love to hear it Ahmed, good luck out there!
This is very explanatory and simple to understand. Thanks Eric for the video.
You're very welcome!!
This was by far the best video I’ve seen on 3 statement modeling. I was trying to watch videos by some prep companies a couple months but those went above my head and made me give up for some time. Thanks !
Means a lot to hear it. Really happy it was helpful and more possible to learn this time around. Cheers !! 🙏🙏
Wow ! This is so good. Thank you so much for the clear explanation. All accounting and finance students/professionals must see this.
Dude, I have no other words but AMAZING for you and this video! Clear, concise and engaging, as I was following every step in the excel file you provided in the video description. I just found my new TH-cam teacher!!
Just a tiny mistake I'd like to point out: under LIABILITIES > Accounts Payable & Deferred Revenue you called the raw "Total Current Assets". Should it not be Total Current Liablities? Thanks
@@giuseppebv9068 Ya that was a small mistake I made - glad you were paying attention and thanks a lot for the comments! Glad the video was valuable for you.
Thank very very much. I was just totally lost, but you came along with your tutorial and made my day. 🙏🙏🙏
Finally I can understand financial modeling. Thanks Erick
Haha that's the idea 🫡
Well done. Your explanations are extremely clear. Thank you!
Happy it was helpful kyle. Cheers
Awesome! A complete and simple explanation of how all 3 FS work together!
Really wonderful video, best 38 minutes of learning I've had all year!
Source: I'm a quant
I'm not sure where to start from. It's my first time and Im very confused. Are you supposed to memorize every single thing? For example what if I dont remember to add longterm debt. What happens then?
Absolutely love to hear that Esteban appreciate the comment 👍
Thank You Eric, You explained this financial model in such an easy and understandable way.
I'm glad to hear it!
This information is so valuable, and I really appreciate the complete breakdown. Your channel is helping me so much. Thank you!!
@@nicolem.williams5511 my pleasure!!! Thanks for the comment
You are the best Eric. Thank you. Can you please do a video of how to use a truth table to calculate depreciation? Thanks
This is amazing man, it helps me a lot for my business even though I'm studying CPA, it's so quick and clear with the video. THANK YOU
Stoked to hear it Dan! Thanks for watching. Cheers!
Awesome video Eric. I've been a Finance manager for a few years and have always been forecasting P&Ls because we're a start up. This will help me take my forecasting skills to the next level. Cheers
Awesome to hear thanks for sharing
I watched 2 of your video now back to back. I have always been interested in Excel and financing models but your videos saved me tones of $$$ in planned course fees. Thanks you
You are very welcome and I'm glad to hear it Muhy 👍
This video is awsome😊 the best modeling course on TH-cam👍🏻
where ever you are may whichever deity you pray to bless you infinitely
You just made this feel so seamless. I got everything on point. You are a great Tutor. Thanks very much.
Thanks!
Thank you 🙏
What a valuable 38 minutes of learning 😊
I really love this...Despite being CPA and having finance bachelor things have never been presented this clearly in my life. Thank you do much 💐😘
😎😎😎 makes me so happy to hear it! Cheers!!
Good intro video. Couple of quick points to add for people interested.
1. Capex purchases should show as negative in the investment cash flows for consistency. P&L is optional but CF almost always is directional.Any asset sales would be positive for CF.
2. That 30k of undepreciated fixed assets (40-10) in the opening balance sheet most likely should be depreciated, not just the new purchases.
Really this 38 mins is worth a lot more then 4 yrs of my graduation. Hats off to you Eric. Your truly an inspiration for accountants like us. Lots of love and gud wishes for you and your future brother. ❤️❤️
Awesome.. This video is better than my MBA accounting class. Thanks Eric
Of course I'm subscribing, I'm most grateful for such a great presentation. You are a life saver.... Thank you
Thank you so glad it was helpful!
But all in all am so so happy ! Your video. Has simplified my life..Thank Thank you.. Respect dear brother
I do appreciate Brother Eric! I have been a practitioner for self teaching on corporate finance..but your vide on build financial statements is reall good..Thank you very very much
Your explanation was great! I have always struggled with basic financial modelling and you made everything appear very simple! Thanks a ton!
Hey shreeya - really glad to hear it. Thanks for letting me know 😁
Y
One of the best videos on building a financial model I have ever seen. It's very concise and well-explained. Thanks a lot, Eric.
Wow! I have learned a lot from you!! thank you man, this is definitely way better than my accounting lessons in college 😊
@Karlsky_ 🙌 that's what I like to hear
Eric: Thank you for the excellent content, your explanation was so amazing.
Hey Kamesh I'm really glad to hear that
Thanks!
Thanks !!
Man! what a course this was!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I understand insects better than numbers but i understood the logic. Very cool, Thank you
Thanks ERIC appreciated good learning, highly recommended for all finance aspirants
You are very welcome Aamir and thanks for the recommendation!
Super glad I found this video! Thank you so much!!!
Awesome. Thank you for your Accounting Teaching. 38 Minutes make me Clear > I ever learned.
You are very welcome happy man
Thank you so much, I agree this is way better than years in undergraduate degree! thank you again
Very good video. I’ve been a CPA for 18 years and a CFO for 14. Your accounting/financial statement format knowledge seems broad. Thank you.
My pleasure and glad it was still valuable for you!
I hope to have a financial analyst job by November/December, I read building a 3 statement model is a must in every FA job interview, thank you for making this Eric!! God bless you!
My pleasure - good luck!!!
Amazing ❤️
Best I have ever seen on 3 Statement model..
Great Work !
This is exactly what I needed !! Thank you so so much Eric!
That's what I love to hear, cheers Swastik
This was a great 38mins of my life
Thank you so much, i've learned a lot and will keep watching your videos!
Glad to hear it, hope to see you in the comments section on some other videos !!!
Great performance. This was understandable and logical
Gorgeouss I studied these ideas back in 2006-207 :DD but after I moved to other countires, so I studied English. So many new words and also a refresh of my previous studies. I hope to pass my JOB interviewww. Thank you so muchh it was incrediblee
You got this, good luck with the interview!!
Thank you! Concise, to the point and weel explained.
Hey, I love this.
I patiently watch this. Needed in my job. My new company has problem in FS. My recently task is Cash Flow. There's a discrepancy. This video of yours I will try this, hopefully can help my employer. Thank you very much. Please create more content about FS or auditing each titles, and taxes. God bless!
Really appreciate your simple and informative video.
God bless you
My pleasure Haji! Thanks
Thanks for the amazing video Eric, excellent as usual.
I just need to raise one issue here, which is the way you calculated FCF (@33:57)
I have a strong tendency to believe that you have made a mistake here, and let me explain please.
FCF can only be equal to Cash flow from Operating Activities - Cash flow from Investing Activities IF THE COMPANY HAS NO OUTSTANDING DEBT ON WHICH IT PAYS INTEREST.
In our case the company had an annual interest expense, and so to calculate FCF from the statement of cash flow it should be as follows:
FCF = CF from OperatingActivities - Interest Expense + Interest Tax Shield - CapEx.
You missed on the "Interest Expense" and the "Interest Tax Shield"
and for anyone who is hesitant about this try to calculate the FCF using the original method which is
FCF = EBIT(1-t) + Dep&A - Chg in NWC - CapEx
and you will find that the numbers are different than in the Video,
whereas if you include the "InterestExpense" and the "InterestTaxShield" as I mentioned they would be the same.
Thank you
I love your excel & finance knowledge skills, you are awesome
Thanks
I really appreciate it!
You are an expert at delivering knowledge
Appreciate that!
Just brilliant. Loved your presentation, loved how quickly you put the whole thing together. Very inspiring. thank you!
I'm so glad to hear it. Cheers!
Excellent and simple Eric ...
Thank you Eric. This explanation is awesome. Very clear and simple.
Mariam - I love to hear that! Cheers!
your explanation is very wonderful
Thanks, Eric. You did a splendid job there. Your teaching skills make it quite easy to understand. You're doing a great job with these tutorials.
I appreciate that wolf man! Cheers
thank you so much. Your video helped me for our business plan submission. Asante sana
My pleasure 🙌
Thank you so much Eric. You helped me understand building the financial models and do my work easily.
My pleasure Daniel 👍
Wow, your video is so well structured and good. You should become a professor or teach a class. I love the way you explain things!
Thank you! I am a teacher, this is my classroom :)
this video is gold...I am able to understand each and everything related to modelling thanks for being a CA student however i was getting problem in excel cause i am like beginner into it....love from india bro and thx for such excellent lesson
Great Job, Eric! Watching this video actually provided answers to the questions of the three main statements. Well represented.
I'm happy this video cleared it up for you. Thanks for checking it out Tania
Just completed this video and i must say it is really great content
Love to hear it! cheers