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Learn/3-Statement Modeling/Formula sheet

3-Statement Modeling Formula Sheet

Every formula in the track on one page. Print it and keep it next to you.

Identities

Accounting identity
Assets=Liabilities+Equity\text{Assets} = \text{Liabilities} + \text{Equity}
Balance check (should be 0)
Assets−Liabilities−Equity=0\text{Assets} - \text{Liabilities} - \text{Equity} = 0

Income statement

Operating profit
EBIT=Revenue−COGS−OpEx\text{EBIT} = \text{Revenue} - \text{COGS} - \text{OpEx}
Net income
NI=(EBIT−Interest)×(1−t)\text{NI} = (\text{EBIT} - \text{Interest}) \times (1 - t)

Roll-forwards

PP&E
End PP&E=Begin+CapEx−D&A\text{End PP\&E} = \text{Begin} + \text{CapEx} - \text{D\&A}
Retained earnings
End RE=Begin+NI−Dividends\text{End RE} = \text{Begin} + \text{NI} - \text{Dividends}
Debt
End Debt=Begin+Draws−Repayments\text{End Debt} = \text{Begin} + \text{Draws} - \text{Repayments}

Cash flow

Operating cash (indirect)
CFO=NI+D&A−ΔNWC\text{CFO} = \text{NI} + \text{D\&A} - \Delta\text{NWC}

Asset up = cash down; liability up = cash up.

Ending cash
End Cash=Begin Cash+CFO+CFI+CFF\text{End Cash} = \text{Begin Cash} + \text{CFO} + \text{CFI} + \text{CFF}

Must equal the balance-sheet cash line.