Can't balance my three-statement model on public company
Hi all, I wanted to build a model of a public company (US listed co) from scratch and almost balanced, but still cannot figure out whats the problem. I checked line by line and adding/subtracting all over again. Would really appreciate some help as I'm off by a constant in each projected year. Can anyone please help? Willing to send some e-pdfs of some books you may need. Thank you so much.
Usually is your cash flow statement incorrectly capturing or missing some changes on the balance sheet, check that first.
Yes I agree, I think it's coming from Financing Cash Flow, but I tracked every line and subsequent changes. Do you think I can send you to have a look? Would really appreciate it.
DM me, I am intrigued.
Another method of diagnosing is by tracking the amount of imbalance.
Then, alter your estimate for each line of balance sheet and cash flow. When the imbalance amount changes, that’s one of the item(s) that was not properly factored.
Thank you so much. Ill try this method, would really appreciate if you can have a look because I've been trying for a day and hitting a wall tbh.
Not sure if you've gotten this yet (I'm sure Rich can figure it out), but if not - is it off for historicals as well as for the projection period? If so, you could also look at the B/S reported publicly and compare by general category to try finding the delta (cash, current assets, current liabilities, equity, etc.).
Another check I used to do when doing a lot of LBO modeling is seeing that FCF (before debt paydown) = change in net debt. That could help you check and make sure you're generally accounting for everything correctly given that the issue seems to be with you Financing CF.
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