complete revenue & cost model
On the modelling part, could someone be so kind to post or PM the parte of a model that builds up in detail the revenue and cost lines in the income statement (just that part, i am not looking for a 3 state model plus valuation) ? The fact is that sometimes i have a wealth of data and observstions to pour into modelling but i can't seem to manage to assemble them in a sensibile mathematical way. For instance, in the airline industry , i may have All kinds of views on passenger growth, cost per seat, load factors, market share, supply capacity, etc... But they don't do me any good if i can't translate in sensibile Financial inputs. (Also to test different thesis eith differenti numbers)
As much as i realize modelling may vary a great deal among different sectors, i am just trying to find some model to begin diving a little deeper.
Thank you for time.
Take a look at some quarterly press releases for the companies you are interested in modeling. They will give you operating data for the quarter. From there, you should be able to pick out a couple of revenue/cost drivers for your operating model.
ah I see I could not explain myself. I did my research and looked over the presentations and much over to address how sensible those business inputs were. what I cannot seem to do is to use such data (and relative projections) and link them to financial inputs in order to make a model for the main stuff: revenue and major cost lines.
(capex for instance is relatively easy in this case when you approximately know how they will scale the purchase of the airplanes: trickier to model if some oversupply will result in a higher cost per unit for instance)
Use the line items that they report on their I/S and use that as a guide. Most of the info they give you on the press release should allow you to at least model revenue, interest expense, taxes, etc. If you cant figure out how to model costs you could always do revenue * %margin to get op income.
pls rply
pls no trolling ty
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