Financial Modeling Topics

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

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Last 10 posts

bank's credit costs calculation
Hi, Can I know how do I calculate the credit costs for impaired loans for banks? Is it correct if it total provisions made for impaired loans / total loans for the time period. Based on the reported figures for 4Q 2020: total provisions made for impaired loans are : S$241 million Total loans... Read More
Go to post added 4 months ago
Banks - Key CAMELS Ratio
Can I understand for banks' operating profit, do we commonly take preprovision profit before tax? If so, how do we calculate preprovision profit before tax?   Please correct me if I'm wrong for the PPOP calculations for banks: PPOP = (net interest income + total non interest income - i.e. fee in... Read More
Go to post added 5 months ago
Bank Financial Modeling
We are looking to improve our modeling ability specifically around banks. I've taken a look at some competitors and their models seem to be stuck in Basel II and aren't updated to the new FASB CECL methodology. We did take a look at Wall Street Prep and it looked like their course was written in 201... Read More
Go to post added 9 months ago
Depreciation Schedule
Hello, I am having difficult completing the deprecation schedule from the template. Do we assume a useful life for buildings and machinery/equipment to calculate the weighted average useful life of gross PPE? I'm not sure how % accumulated depreciation metric is incorporated or how gross % breakdow... Read More
Go to post added 1 year ago
Adv LBO Modeling TL Logic
Hello, I'm currently looking at the super advanced LBO model and I'm trying to understand the logic on the Term Loan Borrowing / Paydown line. Can you please explain what the formula is about? How can you draw on a TL? The formula looks very similar to a Revolver Borrowing / Paydown line. Your el... Read More
Go to post added 1 year ago
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 2 years 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 years 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 years 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 3 years 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 3 years ago