Financial Modeling Topics

Topics related to general financial modeling including standalone projection modeling and nuances & clarifications


Last 10 posts

Historical Cash & Equivalent Reconciliation
Hi WST, I have a somehow stupid question. I realized that we only make projection in the cash flow statement without bothering with the historical cash flow items. I kind of tried to use the same approach in cash flow statement to calculate the historical Cash & Equivalent to see if they would mat... Read More
Go to post added 3 weeks ago
Intangible Asset Amortization
Hi WST, I am trying to build a more detail projection by including amortization of intangible asset amortization; instead of grouping it with depreciation and deducting it from PP&E with depreciation. Now, I am running into a scenario where the company does not break out the depreciation and amor... Read More
Go to post added 2 months ago
Over Estimating Depreciation
Hi WST, Quick question: if we can't have the residual value of a company's depreciate assets; does that mean we could very well over estimate the depreciation expense? Ex. A company has $1000 of machinery and Equipment at the beginning of the period and with 3 years of life. However, without kno... Read More
Go to post added 2 months ago
Trump's Tax Law - Interest Expense deduction limit?
How does one account for the updated Interest Expense deduction limit in financial models?
Go to post added 12 months ago
Convertible Bonds
I am building a projection model and at the stage of building the debt schedule. Now, I have a situation where the company has convertible bond (CB) being classified on its balance sheet into liability portion and equity portion. Now, I am a bit confused. EX, the company raised $1,000 of CB, incl... Read More
Go to post added 2 years ago
Re: Excel Formula of running a scenario analysis
I'm now at the end of the DCF model and I'm about to run a scenario analysis with changes of some variables, e.g. dividend payout ratio and beta. So if I want to set up a table with different combinations of these two variables, is there any excel formula that I can use to fill in the intrisic value... Read More
Go to post added 2 years ago
DCF modeling in an M&A situation
I’m doing a DCF model for a deal, a briefing of the case is as followed: 1. The listed company acquired company A for 39% shares in 2016, therefore there is a profit of associate in 2016. 2. The listed company acquired the rest 61% shares of company A in 2017, the consolidation date is 31/8/20... Read More
Go to post added 2 years ago
Waterfall distribution IRR
I have recently came across a GP structure where the 2nd level waterfall distribution is based on XIRR. But it specifically states that the XIRR is not compounded. I thought inherent in the XIRR calculation is compounding effect. How to build a model that satisfies the non-compounding XIRR?
Go to post added 2 years ago
Question on the model
Question on the model: 1. For the cash flow statement, I understand the min cash balance I should input the amount the firm needs to continue operations. But trying to better understand the mandatory debt repayment cell and what is most appropriate to enter here? 2. For the interest calculati... Read More
Go to post added 3 years ago
Quarterly Modeling - Current Portion LT Debt
When modeling a company and making projections using quarterly financials, should the quarterly balance sheet item for Current Portion of LT Debt include the next 4 quarters of mandatory payments? If so, to not add debt to the balance sheet, do you then decrease the Long Term Debt liability by the ... Read More
Go to post added 3 years ago