Overview

A 3 statement model template connects the income statement, balance sheet, and cash flow statement into one dynamically linked financial model.

This model has an assumptions and drivers section which is used to build the forecast in the 3 financial statements. The model is built in a single tab (worksheet) format. Why should financial analysts or anyone working in the finance industry learn about the three statement models? The 3 statement model template is the foundation on which more advanced financial models are built such as discounted cash flow DCF models, mergers models, leveraged buyout LBO models, and various other types of financial models. Advantages of a single worksheet model are:
  • Easier to navigate (don’t have to switch between tabs)
  • Less risk of mislinking formulas (all time periods are in the same column)
  • More organized with the use of grouping cells
  • Allows more room for consolidating multi-business companies
 

Building a 3 Statement Financial Model Template

There are several steps required to build a 3 statement model, including:
  1. Input the historical financial information into Excel
  2. Determine the assumptions that will drive the forecast
  3. Forecast the income statement
  4. Forecast capital assets
  5. Forecast financing activity
  6. Forecast the balance sheet
  7. Complete the cash flow statement
Some general best practices include keeping all assumptions in one area, using consistent formatting, keeping formulas simple (avoid long complex ones), and using charts and graphs to display results. If you want to learn more about how this 3 statement model template was built, check out CFI's financial modeling courses.  

This business tool includes 1 Excel Model

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Shaun Walsh

Can’t see how to download this. Any advice welcome!

    Corporate Finance Institute®
    Corporate Finance Institute®

    Hi Shaun,
    To download the template, click “Add to Cart” and then “View cart” to see all the items you want to download. Click “Proceed to checkout” to confirm your details and read terms and conditions. Finally, click “Place Order” to complete the checkout and your selected template will appear in your dashboard.

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Ron

Thank you.

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Peter Aitken

Excellent

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Nenad
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Lezi

Excellent

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Lezi
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Faz
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Tristan Margot
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Khalil Shahin
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Vitor Bishu

Simple 3 statement model template, thanks for sharing

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